DGFT Launches E-Tariff Rate Quota System for Importers

Recently,the Director General of Foreign Trade has decided to announce the launch of an online e-tariff rate quota system for interested applicants for imports. Applicants seeking tariff rate quota for imports are available in the import management system, the process of applying online under the e-tariff rate quota. In this article, we will discuss all these features in detail step by step process.

DGFT Trade Information

DGFT announced the following information in its trade notice:

With effect from 8 February 2021, an easy format has been created for applicants seeking import tariff rate quota to apply online through the import tax dashboard on the DGFT web portal.
For applications that have already been submitted for the financial year 2021-22 and are yet to be processed, they will be transferred to the new system.
As to any amended request for a TRQ license issued on or after February 8, 2021, it was electronically mandated to be produced by the TRQ system.
Licenses for all TRQs have been submitted electronically, and such license data was mainly decided to transmit electronically to customs officers.
Since 8 February 2021, no paper copies of the TRQ import license issued by the Director General of Foreign Trade have been made.

Tariff Rate Quota

Tariff Rate Quota is a mechanism that allows a specified quantity of specific products to be imported. These items are as per the special custom notification attached to it. Tariff quotas are used on many products, most of which are in the agricultural sector.

TRQ is allocated to the importer by DGFT after paragraph 2.62 of the procedures manual, 2015-20. The TRQ authority will include the importer’s name and address, IEC code, customs notification number, sub-title or tariff item applicable, quantity and certificate validity period. The TRQ authority was issued electronically by the DGFT and a process for transmitting the ICES system was made. Import against TRQ will be allowed only if the TRQ quantity is electronically debited in the ICES system.

Benefit from Tariff Rate Quota Scheme

The following people will be benefited from the tariff rate quota scheme:

Manufacturer exporters with or without support manufacturer

Merchant exporters associated with subsidiary exporters

Service provider.

Prerequisites for applying for TRQ authorization

To apply for authorization, the following are based on the following prerequisites:

DGFT user profile must be combined with IEC code.

A valid digital signature certificate must be registered in the system.

GSTN details are required as per IEC branches.

Fee for Tariff Rate Quota Application

For issuing the authorization, a registration fee of Rs 1 thousand for each application will have to be paid for a minimum of Rs 500 and a maximum of Rs 1 lakh on the CIF amount of the authority through the electronic mode in the online system. It is worth noting that the TRQ authorization, the authorization will be considered valid for imports for 1 year from the date of release.

Application Procedure for Tariff Rate Quota

The procedure to apply for e-tariff rate quota in the import management system through the importer’s dashboard on the DGFT website is given below.

New User Registration

Open the DGFT website, access the main page and follow the further process along with the registration process. Enter the registration details and select Register user as importer / exporter. Enter one time password received on email and mobile number. On successful OTP verification, you will receive a notification containing a temporary password, which must be changed at first login.

Apply for Tariff Rate Quota Application

After logging into the DGFT web portal navigate to Services and select Import Management System, and click on TRQ option.
Apply for TRQ on tile, click on explore link.
On the Application Type screen, enter the value on the screen and select Save and Next proceed.
On the firm details screen, enter all the required input values and select Save and select Next option.
On the import details screen, import item details, introduce the required input values in the import details and save and choose the next option.
Once you enter the details on the Import Details tab, the user will be directed to the Port Details tab.
The ribbon will be displayed on the Other Details screen, based on the value selected for the purpose of the import dropdown on the Port Details screen. The user has to fill the input value on the other details screen and select Save and Next option.

Declaration Section

In this section, click on the checkbox, accept the terms and conditions and provide all the necessary details and save and choose the next option. On the Application Summary screen, tick the Approval of Declaration checkbox and click on the Sign button to sign the application through digital token.

Payment

On clicking the sign option, payment will be displayed to apply option-TRQ. Proceed to pay.

Conclusion

It may be noted that help manuals and FAQs have also been set up on the website of the Director General of Foreign Trade to facilitate changes in the e-tariff rate quota system.

May 25, 2021May 25, 2021

Foreign Direct Investment: Overview, Types, Advantages & Disadvantages of FDI

Foreign direct investment or FDI is one of the most important sources of direct investment in countries. Unlike foreign portfolio investment, an investor in a country holds control of any business or organization in foreign lands receiving investment. FDI also indicates the political and socio-economic stability of a country. In this article, we will discuss about the types of FDI and foreign direct investment.

Overview of FDI

Foreign investment can be either organic or inorganic. In the case of organic investment, a foreign investor pumps in money to accelerate expansion and growth in established businesses. In the case of inorganic investment, an investment institution buys a business in its target country.

Foreign direct investment in a developing economy in India and parts of South East Asia gives a lot of boost to businesses that are in poor financial condition. The Government of India employed various measures to ensure that large-scale investment in sectors such as defense, telecom sector, PSUs and IT sector came into the country.

FDI is a non-debt financial resource, it has the potential to become a major driver for economic development in the country. With globalization and internationalization, FDI has become a reality. Whereas, according to scholarly opinion, foreign investment has been released keeping in mind the following factors:

It aims to control companies in a foreign land.
It has helped businesses overthrow monopoly practices.
Considering market imperfections, such investments help companies make an impact in case of a sharp and unpredictable drop in business activity.

Types of Foreign Direct Investment

There are various types of foreign direct investment. Let us discuss its types in this segment.

Horizontal FDI

Horizontal FDI is the first of its kind. It is checked when a business enters a foreign country through the FDI route without changing its original activities or for any other reason for its expansion. It is also one of the most common sort of FDI. An example of this type of FDI is McDonald’s investing in an Asian country to increase the number of stores in the region.

Vertical FDI

Vertical FDI is another form of FDI. This FDI occurs when an investment is made in a company within a specific supply chain and which may or may not be related to the same industry. When vertical FDI occurs, a business invests in a foreign firm that supplies or sells products. An example of vertical FDI is if McDonald’s purchases a large-scale meat processing plant in the European country, to boost its meat supply chain in the target country.

Conglomerate FDI

When the investment is made in two different companies of different industries, the transaction is called Conglomerate FDI. As such, FDI is not directly linked to investor business. An example would be in this case when American retailer Walmart invests in Indian automobile manufacturer Tata Motors.

Platform FDI

Among the types of FDI, platform FDI means expansion of business in a foreign country, but everything manufactured there is exported to a third country. This form of FDI is seen in the trade-free zones of FDI-starved countries. For example- French perfume brand Chanel set up a manufacturing plant in the US and exported products to other parts of Asia and Europe.

If you want to invest through FDI, it is important to know about various types of FDI, including examples. With FDI, the money invested can be used to start a new business in a foreign land or to invest in an existing business in a foreign land.

Advantages & Disadvantages of these types of Foreign Direct Investment

FDI has its advantages as well as disadvantages. Let’s take a look at these two sides of FDI.

Advantages

With the increase in FDI, businesses benefit through tax breaks or incentives and the ability to further diversify.

For the country receiving FDI, benefits such as more excellent employment opportunities, access to latest technologies and modern management methods etc. can be enjoyed.

FDI can help create a level of dependency between countries that will maintain a peaceful environment.

Disadvantages

Large corporations take over the market, and this hurts local businesses. One of the examples is walmart.

There is a risk of profit repatriation which means that the profit generated in India will not enter the domestic economy.

FDI can affect a country’s exchange rates.

Conclusion

FDI has been an important driver of economic growth and also an important source of non-debt finance for India’s economic development. Therefore, there should be a robust and easily accessible FDI system. Once the epidemic ends and the economy opens up completely, analysts predict various types of foreign direct investment to flood.

May 21, 2021May 21, 2021

Awareness of the Environmental Challenges in the International Business

Globalization has reduced the boundaries of operations or businesses worldwide. With the rapid growth in trade enterprises, there has been a significant increase in global trade in goods and services which has reached 25% of the entire GDP. International trade in manufacturing has also increased since 1995. Increasing globalization Businesses wishing to work abroad are facing some major challenges.

International trade is not easy to do due to challenges in the international business environment. It faces challenges such as various uncertainties and different political environments, taxation and other legal constraints. In this article, we will cover some of the major challenges faced in the international business environment.

International Business Environment

International Business environment, refers to trade worldwide. In other words, it means selling and buying goods and services worldwide. Keeping international trade management in one country connects transactions across borders.

The scope of international trade is expanded as it focuses on the opportunities and challenges in a globally operating business environment. The differentiating factor of this business from domestic trade is that international trade is subject to rapid change in an uncertain environment with the possibility of a fully increased income and customer base.

Types of International Business Environment

Some of the major types of international business environments are:

Technical Environment

The technical environment is related to technological upgrading as well as technological adoption and advances in manufacturing and production methods. The success level of a business depends on the acceptance level and utility of technological innovation in different countries. With technological advancement, businesses gain competitive advantages and remain competitive on global terms.

Political Environment

The political environment includes a government that operates in the economy, its laws, policies, etc. Business owners while doing business in other countries deeply considers the political risks prevailing in the country and the government’s relationship with political risk.

Cultural Environment

Culture in any country means the establishment of trust and values in the country. It depends on the main factors like language, history, level of education, resistance to change, lifestyle of people, etc. And these factors act as an alliance to maintain the cultural environment in the country.

Economic Environment

In this, all factors are considered when doing business in a country. Each country may differ in terms of its economic environment depending on the category of the country, whether it is a developed, developing or underdeveloped country. The economic environment is cut after taking factors such as national and per capita income, taxation aspects, availability of raw materials, infrastructure facilities, etc.

Biggest Environmental Challenges in the International Business

Businesses today are diversifying and diversifying more than ever before to reach new customers, grow their customer base, and increase their overall profits. As yesterers in global markets become more accessible by becoming more interconnected, international trade involves risks and challenges that must be dealt with. Some of the major challenges in the international business environment are as follows:

Corporate Structure

If the working structure of the company is not pre-decided then the structure of the company can challenge your business. There should be a qualified team if the company wants to be globally competitive, for which it will consider the organization structure and location from where the team operates.

Foreign Law

A clear understanding of foreign laws is not a challenge for international businesses. Therefore it is considered mandatory to gain a comprehensive understanding of laws and regulations. There have been instances where businesses had to face the heat due to lack of understanding of foreign laws. This is a major challenge that needs to be attended.

Accounting

This is an important concept when it comes to multinational trade which is responsible for paying corporate tax in the countries they operate. Various tax implications, tax rates and compliance requirements pose a challenge in international operations.

Liability to pay Taxes

A company is responsible for paying taxes in the country of its operations. Paying multiple taxes proves a challenge for companies with double taxation to reduce their overall revenue. Tax liabilities challenge companies because of lack of understanding of tax concepts, lack of understanding of tax treaties between countries etc. Companies should get advice and knowledge in tax concepts that can help the company.

Payment method

Payment methods become one of the most hunger challenges in the international business environment. This is because the payment methods applied in the home country may not be acceptable abroad. Hence it becomes a challenge for any business as payment is the key to running. However, to deal with this, businesses may decide to have different ways of accepting payments.

Currency Rate Fluctuations

The fluctuation in currency rates is one of the challenges in the international business environment that needs to be considered by a business operating abroad. Major volatility can affect spending and profits.

Cultural differences

Communication is a skilled skill for businesses, whether working at home or abroad. However, differences in cultures and languages in countries constitute a significant challenge. Given that effective communication is critical to international business success, companies are looking to adopt means to bridge cultural differences.

Political Risk & Terrorism

International businesses have to deal with cases of political instability, and political risk in the form of uncertainties is a major challenge and threat. Regulations and policies that are not pro-business may adversely affect the functioning of the business.

Terrorism has also been another large-scale issue that needs to be distributed as global trade is not easy with terrorism.

Conclusion

There are many challenges in the international business environment that must be actively overhauled. We may also see new forms of challenges in the future but are we ready.

May 17, 2021May 17, 2021

Is RBI’s Covid-19 Measures Adequate for Small Lenders?

It has been a year for all of us battling the Covid-19 pandemic, and now the small lenders find themselves in the same place where they were last year. As small lenders face uncertain business environments due to lockdowns in states, they are apprehensive about another set of assets. In this article, we will discuss RBI’s COVID-19 measures in 2021 and announcements for businesses.

Problem of Small Lenders Due to the Lockout across the Country

Due to the acute impact of the Covid-19 epidemic, many states in India are under quality stress. In this article, we will find out what is sufficient about the recently announced RBI’s Covid-19 measures to help small lenders in a time when a full or partial lockdown is declared. This has worried small lenders a lot as it will affect their collections and livelihoods. According to industry officials in the microfinance and banking sector, the lockdown has hit small and medium business owners tremendously, thus forcing them to close shops and close collections by micro-lenders.

Now I can quote the words of Mr. Samat Ghosh, founder of Ujjivan Financial Services, who has expressed his views in this regard and said that the impact of Covid-19 has been seen for a year now, and the second wave spread like this. It is both a medical and economic problem. He further stated that this is one of the biggest crises to hit the region.

The positive thing here is that the lockdown will not last long. Last year Lockedge continued for an extended period of time at different stages, and Lockdown’s economic losses were enormous. There is no accurate estimate of how many shops closed, but the number is certainly beyond expectations. Demand from homes and consumers affected by the resulting economic stress.

RBI Covid-19 Measures During First Wave

The timely intervention of the Reserve Bank and the government enabled the banks to avoid a steep decline in non-performing assets, it is possible to avoid. The government announced a Rs 20 lakh-crore Covid-19 relief package, a significant portion of which were measures announced by the Reserve Bank. In all, the Reserve Bank infringed liquidity of Rs 1.27 lakh crore. In addition, the Reserve Bank also announced a six-month loan moratorium and lump sum loan facility under the Covid resolution framework.

The liquidity assistance given was through targeted long-term repo operations and specialized open market operations. These measures by RBI helped banks and micro-finance institutions to prevent large asset quality shock.

RBI’s Second Round of COVID-19 measures

On May 5, 2021, the Governor of the Reserve Bank of India, Shaktikanta Das, publicly discussed the measures. One of the important plans of these measures is Resolution Framework 2.0 which allows small companies to restructure them, loans that did not do so.Further borrowers who took risks up to Rs 25 crore who could not take advantage of earlier facilities. They will be considered eligible for debt restructuring as the loans are standard by 31 March.

The reorganization can be implemented by 30 September 2021 under the Resolution Framework 2.0. Banks are required to implement it within 90 days of the call. Lenders can review the working capital limits of small businesses and micro, small and medium enterprises as a one-time measure. Shri Shaktikanta Das said that those who have taken advantage of the back window of debt restructuring can be granted two additional years of deferment. He further said that he announced a liquidity facility of Rs 50 thousand crore to give loans to banks for Covid infrastructure.

RBI announced tagging of micro-finance institutions from small finance banks as priority sector lending loans. This means that lending by banks is compulsory for the economically weaker section. Banks should give 40% of their loans in this category.

Recently, the process of lending by microfinance banks to micro finance institutions was not a priority sector lending classification. However, the RBI governor said that due to the fresh challenges and to ascertain the liquidity position of small micro finance institutions, small finance banks are now offering new loans to small micro finance institutions for lending to individual borrowers in the form of PSL. Has been allowed.

Industry Responded to these Measures

Large banks may not have immediate concerns because of the broad provision made on the Covid effect, but these measures may not help small lenders avoid the second wave of Covid-19 if the situation does not improve on the ground. Unlike large banks, small MFIs do not have very large cash reserves.

The Reserve Bank of India’s Covid-19 measures have been adopted by the industry, but if the lockdown continues for long, the sector may face a huge crisis. Micro finance institutions have already started seeing disruptions in their normal operations due to the lockdown, as this is the biggest issue for the customer. Customers of micro finance institutions are mainly small businessmen, who are the first to be affected during lockdown.

Conclusion

Small lenders are expecting further measures from the Reserve Bank in the coming days or weeks. In uncertain times, these people are searching for authorities to come up with announcements that can keep their businesses alive and active. However, the current situation of the Covid-19 should improve, which would be a different primary expectation from the Covid-19 measures of the RBI. But for now, things look bleak for small lenders.

May 14, 2021May 14, 2021

Comprehensive Guide: Process of UAN Registration and Activation

UAN is known as Universal Account Number. It is important because the entire process related to Employee Provident Fund (EPF) services now operates online. UAN has become one of the important things as the entire process of Employees Provident Fund Services is now conducted online. With UAN, it is easy to access your provident fund account services such as withdrawals, check EPF balance and apply PF loan. In this article, we will discuss UAN registration and activation.

Universal Account Number (UAN)

The UAN is a 12-digit unique number. It is entrusted to employees who contribute to the Employees Provident Fund. It is allocated and produced by the Employees Provident Fund Organization and certified by the Ministry of Labor and Employment, Government of India.

This number provided to employees remains the same throughout their lives, even if such individuals switch. When an employee changes their job, the EPFO allocates a new member identification number that is associated with the UAN. As an employee, you can request a new member ID by providing a UAN to the new employer. When a member ID is created, it is linked to the employee’s UAN. Thus, the UAN acts as an umbrella for more than one member Ids allocated to the employee.

How to Generate UAN?

Typically, you are allocated a UAN by your employer. Some employers also print this number in the salary slip. If you are unable to get your UAN from the employer, do not worry that you can also get it through the UAN portal. Follow the steps given below:

Visit UAN portal – https://unifiedportalmem.epfindia.gov.in/memberinterface/
Click on the option and know your UAN status, and a page will appear.
Select your state and EPF office from the dropdown menu. Other documents like name, date of birth, phone number, etc. must be entered by entering your PF number with details. After which the selection authorization PIN will be received.
A PIN will be sent to your phone number from the main website. Enter the PIN and click on the option which will result in OTP and UAN being validated.
After which your UAN will be received on your mobile number.

Procedure of Activation & login to EPFO Website with UAN

To activate your UAN, you must have a UAN and PF member ID ready. The following steps can be followed to activate the UAN on the EPFO portal:

Go to the EPF homepage and click for staff under our services on the dashboard.
Follow the option of clicking on Member UAN / Online Services in the Services section. After which the UAN portal will open.
Enter Universal Account Number, Mobile Number and PF Member ID. Next, click on the option from which to get the authorization PIN. You have to fill the PIN on the registered mobile number.
Select the option I agree under the disclaimer box and enter the OTP you receive and then click on the option Validate the OTP and activate the UAN.
Upon activation of UAN, you will get a password on the registered mobile number to access your account.

Features & Benefits of UAN Registration

The following points should be considered as benefits and features of UAN registration:

UAN helps centralize employee data in the country;
This unique number reduces the burden of employee verification from companies and employers;
This has made it possible for EPFO to obtain bank account details and KYC of member without the assistance of KYC and employers;
It helps the EPFO track multiple job changes of an employee;
With the introduction of this UAN, the incidence of premature and premature EPF withdrawal has been reduced.

Employees receive certain benefits with the use of UANs. They are:

Easy to extract PF online with this number
Employees use this unique account number to easily transfer PF balance from old to new.
Whenever you need a PF statement, you can download it immediately by logging in through Member ID or UAN.
If the UAN is already verified, new employers are not required to validate your profile.
With UAN, employers cannot access or hold their employees’ PF money.
It becomes easier for employees to ensure that their employer regularly deposits their contribution to the PF account.

Documents required for UAN Registration

These documents are required to get your unique account number:

Bank account details like account number, IFSC code etc are required.
ID proof like driving license, Aadhaar card etc.
Address Proof
Pan Card
Aadhar Card
ESIC Card

UAN Helpdesk for Any Other Information

A UAN helpdesk is available on the EPFO website, which contains various sections. There are two broad sections – Help and Claim. EPFO helps in meeting employee and employer queries regarding office locations, services etc. The claim complements the various claim forms available to users. Members can use this UAN helpdesk at any time to gain clarity against questions and doubts.

Conclusion

UAN registration and activation is a process done online, and there is no need to pay any fees for it. Universal account number has become one of the important things as the entire process of Employees Provident Fund Services now operates online. If you have any query related to UAN registration or activation, use the UAN helpdesk, and get the solution easily.

May 13, 2021May 13, 2021

Income Tax Compliance Deadlines Extended Amid Covid-19

As a major relief for taxpayers, the government has extended compliance deadlines relating to income tax as well as the main tax for Google and service tax. The government has waived late fees to reduce compliance burden amid the second wave of the Covid-19 epidemic. With the rapidly growing Covid-19 cases in the country, experts are of the opinion that the government may need to push the deadline.

Compliance extension Related to Tax, Accordingly Central Board of Direct Taxes

The CBDT said in a statement that due to adverse conditions caused by the Kovid-19 epidemic and after considering multiple requests from taxpayers, tax advisors and other stakeholders across the country, requesting an exemption in compliance dates, the government today announced some Has extended the deadline. .

The Ministry of Finance had received several industry representations from MSMEs (Micro, Small and Medium Enterprises) for up to 3 months of breath taking. The due date is extended in respect of FY 2019-20, GSTR-1 (Sales Return), GSTR-4 (Annual Composition Return), GSTR-3B (Summary Return), filing or amended income tax returns for filing appeals. And payment of taxes. In addition, the rate of interest has been rationalized and late fees have also been waived in many cases.

CBDT Exemption given to Taxpayers

The list of exemptions granted to taxpayers with tax-related compliance between Kovid-19 is as follows:

The appeal to the Commissioner under Chapter XX of the Income Tax Act has been extended till May 31, 2021 or for the time conferred under that section, whichever is later. Earlier, the deadline was 1 April 2021.

The objection to the Dispute Resolution Panel under Section 144C of the Income Tax Act has been extended till May 31, 2021 or for the time provided under that section, whichever is later. The first filing deadline was 1 April 2021.

In response to a notice under section 148 of the Income Tax Act, the income tax return has been extended till May 31, 2021, or the time allowed under that notice, whichever is later. The first filing deadline was 1 April 2021.

Filing of amended returns under sub-section (4) of sub-section (5) of section 139 of the Income Tax Act for the assessment year 2020-21 and filed under section 139 of the Income Tax Act for the assessment year 2020-21 can go. The provision to be filed on or before 31 March 2021 is certain.

Payment of tax deduction under Section 19-1A, Section 194-1B and Section 194M of Income Tax Act and filing of challan cum statement for deducted tax can now be paid on or before 31 May 2021 and furnished. can be done. Before this it had to be done first. Paid and furnished by 30 April 2021 under Rule 30 of the Income Tax Rules 1962.

Statements in Form 61, details of declarations received in Form 50, can be furnished on or before 30 April 2021.

Extension of GST Compliances

The Ministry of Finance has noted nine changes in GST compliance requirements. Notification has been issued based on the recommendations of the GST Council, which is as follows:

Businessmen with a turnover of more than 5 crores in the preceding financial year waive their late fees when they fail to submit their returns in GST Form-3B within 15 days from the due date for March and April.

Businesses with a turnover of up to Rs 5 crore, delay charges are waived for up to 30 days during two months. Taxpayers have a turnover of up to Rs 5 crore, a 30-day window applicable from January to March.

The date of submission of returns in Form GSTR-4 of CGST Rules, 2017 for the financial year ending 31 March 2021 has now been extended by one month to 31 May 2021.

The government also extended the period of declaration to be submitted in Form GST ITC-04 in respect of goods received from such laborers or such laborers during the period from 1 January to 31 March to 20 May 2021.

The government gave the officers more time to perform their statutory duties in view of the raging epidemic.

Expert Observations Detailing Tax Related Compliance

As you will be aware of the fact that many parts of India are facing some kind of bandh. Tax experts believe that SMEs would have been one of the most affected areas had the tax related compliance deadline not been extended.

Shailesh Kumar, Nangia and company LLP partner, are of the opinion that the government has given much needed compliance relief to the taxpayers, and if the situation in the country does not improve in future, the government may have to push these deadlines. A large number of people reel under the epidemic.

EY’s tax partner Abhishek Jain said that with the unprecedented boom in epidemics and lockdowns in many parts of the country, many industry players will find it difficult to meet the GST compliance deadline. Therefore expansion will provide much needed relief.

Sachin Taparia, president and founder, local circles said the government may have to extend the deadline until June 30, unless the small businesses are prevented from filing, the lockout and ban will continue until May 24.

Also Read : How to file income tax for private limited company ?

Conclusion

Likewise, this is no doubt a much-needed relief for taxpayers and businesses as the deadline for tax related compliance has been extended. The Covid-19 epidemic has caused so much uncertainty in everyone’s mind that it has become mandatory to make informed decisions. The way things are moving, we may see another expansion in the future.

May 10, 2021May 10, 2021

Can NRI Purchase Commercial Property in India?

This is a question that comes to the fore when an NRI wants to buy commercial property in India, and this brings with it some other relevant questions, such as if NRIs can buy commercial property in India, they can What type of property can one buy? What procedures must be followed by an NRI to purchase a commercial property? Many more questions. In this article, we will answer some of the questions related to buying commercial property out of these keeping in mind the RBI guidelines.

NRI Buying Commercial Property in India

An NRI can buy commercial property in India. As per RBI guidelines, a non-resident can purchase specific types of properties in India. However, it is worth noting here that it is also possible to purchase other types of assets after obtaining special permission by RBI.

An NRI who purchases property in India should be fully aware of the legal provisions that a real estate owner owns within the country. As per the provisions of the Foreign Exchange Management Act, persons of Indian origin and non-resident Indians are considered one and the same when it comes to investing in real estate in India.

Properties That Non-Resident Indians Can Buy

The Reserve Bank of India generally allows NRIs / PIOs to purchase commercial property ie a valid Indian passport is held by the Reserve Bank of India for the purchase of residential or commercial properties in India. In that case, the investor does not need to obtain RBI special permission for this. The investor is also not required to inform the Reserve Bank about the purchase of India’s residential / commercial property.

An NRI can obtain permission to purchase any number of properties as per RBI rules and income tax laws. If an NRI investing in residential / commercial property in India does not reenter the country, and then the purchase can be made by giving a legally binding power of attorney to another person.

Properties That Non-Resident Indians Can’t Buy

However, there are certain types of properties that cannot be purchased by NRIs / PIOs. The general permission of the Reserve Bank of India does not allow NRIs to purchase agricultural land / plantations in India. This means that non-residents cannot invest in a farmhouse without obtaining special permission from the Reserve Bank of India, which is not guaranteed.

The Reserve Bank considers such applications only on a case by case basis, and then it is decided by the decision whether to allow NRIs to purchase such property.

Some Essential Points to be followed by an NRI to buy a property in India

The following points should be considered by NRIs:

According to the RBI’s general authority, an NRI can purchase property either in person or in person with another NRI. The most effective way to buy property is to adopt a power of attorney.

Appoint a power of attorney who will be your personal legal consultant and will also suggest you on all matters related to real estate and all other formalities as he is an expert in the field. This method has been employed by many in a cost-efficient and effective manner.

Given that he is familiar with Indian laws and the real estate market, he will be able to help you with the best deals. It is also advisable to appoint a General Power of Attorney or a Special Power of Attorney which you believe to be reliable as it will be easier to communicate.

Entry Strategies for Investing & Setting up a Company in India

Foreign nationals entering Indian territory must have a valid passport / travel document and valid visa. Visas can be for tourism, entry, transit, conferences, trade and employment purposes in India, re-issued to Indian embassies and consulates abroad.

Business visas can be issued for a period of 5 years with multiple entry provisions. A business visa is issued by an Indian embassy abroad, and if the applicant wishes, it can be renewed / extended within India. A foreign national has a visa (other than a tourist visa) that is valid for a period of more than 180 days, and must be registered with the FRRO within 15 days of arrival in India. A bank guarantee must be provided.

Investors class coming from outside territory of India

The following are the classes of investors coming from outside the Indian territory or to invest on NRI property:

Non-Resident India or Persons of Indian Origin or Overseas Citizen of India

Foreign Companies

Foreign venture Capital Companies

Foreign institutional investors and foreign portfolio investors

Automatic Pathway of Foreign Investment in India

Automatic route means that it is the route under which foreign investment does not require pre-approval from the government. As such: neither from the government nor from RBI. However, investors are mandatory to inform the respective Regional Office of RBI within 3 days of receipt of incoming dispatch.

Conclusion

Thus, it is clear that NRI can buy commercial property in India, although the buyer should have information in the details of various legal requirements related to being a real estate owner, so that the buyers can easily buy real estate. Apart from this, if you are an NRI and often do not travel Indian, you can easily buy property for yourself in India by giving legally binding power to another person.

May 4, 2021May 4, 2021

Rules of SEBI (Stock Broker) Amendment Regulations Act, 2021

The SEBI (Stock Broker) Amendment Regulations, 2021 had been notified by the Securities and Exchange Board of India, the last date of March 30, 2021. In this, regulations were issued to amend the SEBI (Stock Broker) Regulations, 1992. Regulations were introduced in the exercise. Powers conferred under Section 30 of SEBI Act 1992. In this article, we will discuss the major changes brought about by the amendment.

Definition of SEBI (Stock Broker) Amendment Regulations, 2021

As per the amendments brought in SEBI Scheme, the definitions are inserted in Regulation 2 of SEBI (Stock Brokers) Regulations. These include the following definitions, which are as follows:

Underwriter

The underwriter is a person, a body who engages in the business of underlining the issue of corporate securities.

Underwriting

This means that there is a contract to acquire a subscription for issued securities, or to subscribe for an issued sale, which is presented for sale without balance.

Issue

Issue means the sale or purchase of securities by a body corporate or any other individual or any person or group of such persons on their behalf, such as from the holder or holders of a merchant banker or the holder of such body corporate’s securities or persons. Or a group of people etc.

Important Changes in SEBI (Stock Brokers) Amendment Regulations, 2021

Some of the important changes includes in SEBI (Stock Brokers) Amendment Regulation Act, 2021, as follows:

As per Regulation 3, it has been provided that every stockbroker holding a valid certificate of registration will be entitled to act as an underwriter.
In addition, each stock broker acting as an underwriter will enter into a contract that is valid with the body on the basis of which he acts as an underwriter.
Each share broker acting as an underwriter must maintain the following books of account and documents, including:

An entity is corporate in relation to the underwriter

Copy of the balance sheet and profit and loss account at the end of the accounting period and the auditor’s report on the accounts for that period.

The body is not corporate in relation to underwriting

Records in relation to the funds received and expended by them and in respect of which receipts and expenditure are held and their assets as well as liabilities.

Each stockbroker, acting as an underwriter, must enter into an agreement with each body corporate, on whose behalf it acts as an underwriting authority, and the said agreement shall, among other things, provide for –

The period for which the rule for the agreement is applied.
Allocation of duties as well as responsibilities between the underwriter and the client.
Number of underwriting obligations.
The period within which the underwriting issue should be subscribed after notice from or on behalf of a corporate body of that kind.
Commission amount or brokerage payable to the underwriter.
Particulars of arrangements made by the underwriter to fulfill the underwriting obligations, if any.

Moreover, SEBI (Stock Brokers) Amendment Regulations, 2021, lays down the responsibilities and duties of a stock broker acting as an under-broker.

Responsibilities of a stock broker as an under broker

The following responsibilities should be fulfilled by the stock broker as an underwriter:

Not every share broker acting as an underwriter should receive any direct or indirect profit from underwriting other than the commission or brokerage payable under the agreement for underwriting.
According to all agreements, the total underwriting obligations should not exceed 20 times the net worth, which is under the rule.
Each share broker acts as an underwriter, who is asked to subscribe to the securities of an entity corporate for a contract, must subscribe to such securities within 45 days of receiving such notice from such body corporate.

Underwriter’s Duty

Further, the responsibilities provided above, the stock broker acting as an under-broker shall follow the points indicated below:

The stock broker will make all efforts to protect the interests of its customers.
He will ensure that it and its personnel act in an unethical manner in all its deals in which the body is an issue of corporate securities.
He shall not make any statement, oral or written, which may misrepresent:

Service that the underwriter is able to perform for his client or has been provided to another issuing company.
His commitment to underwriting.

A stock broker has to avoid a conflict of interest and disclose his interest adequately.
He should put in place a mechanism to resolve conflicts of interest situations that may arise in the conduct of his business or, if it arises, take appropriate steps to resolve them in an equitable manner.
He must make reasonable disclosures about his potential source or duties to the client and potential areas of conflict of interest when he acts as an underwriter that may hinder his ability to provide impartial, objective and impartial services .
He should not give any confidential information about his issuing company to the other issuer, press, or any other party that came to his knowledge of the issuing company without disclosing it to the director and director of the board of directors and directors. .
The stock broker should ensure that any change in the status of registration / any punitive action by the board or any material change in the financial which could adversely affect the interests of the clients / investors and the customers are informed immediately, And any outstanding balance is transferred to any business. Other registered persons as per any instructions of the affected customers / investors.
The stock broker or any of the employees should not submit any investment advice regarding any security in publicly accessible media in real time or non-real time, unless its interest is disclosed, including the said security. Includes his long / short position. While giving such advice.

If an employee of a stockbroker gives such advice, the stockbroker must ensure that when giving such advice, it is mandatory for the stockbroker to disclose his interest based on the interests of the family member and employer of the employee.

A stockbroker or its director, partner, manager, who manages business affairs in whole or to a large extent, is not required to engage in insider trading either through his accounts or his associates or family members, relatives or friends. needed.

Although he will not engage in any unfair competition, which may be detrimental to entities acting in the interest of the underwriters as the underwriter may carry on the business or, likely, while competing, may put other such underwriters in a disadvantageous position related to the underwriter. Assignments.

There should not be a party or instrument for the underwriter:

Create false market
Ragging price or manipulation
Passing of unpublished price-sensitive information in relation to securities that is listed on or proposed to an individual or intermediary to a stock exchange.

Conclusion

Thus, It is clear that the SEBI (Stock Broker) Amendment Regulations, 2021 contains provisions relating to agreements with customers, which have been inserted as underwriters with common responsibilities and duties. For accurate or more information or understanding, please visit SEBI notification.

April 29, 2021April 29, 2021

Form 10BA: Filling Up Income Tax Form

A declaration has been filed by the Form 10BA taxpayer claiming the deduction under section 80GG of the Income Tax Act for rent paid on rental property. This article focuses on how to file Form 10 BA before claiming deduction under Section 80GG.

About Form 10BA

Form 10BA is a statement documented by the taxpayer, which is required to claim deduction under section 80GG for rent paid on rental property. It is mandatory for taxpayers to meet two requirements to claim deduction under section 80GG.

These requirements are as follows:

The first requirement as per the requirements is that the taxpayer should not obtain a House Rent Allowance (HRA) from any organization.
The second requirement is that HUF should not keep any self-occupied dwelling. In the case of taxpayer, spouse and minor children, or the assessee be a part of HUF (Hindu Undivided Family).

A taxpayer can submit the statement in Form 10BA if both of the above requirements are met, and it will be mandatory to file the form before filing the Income Tax Return.

Section 80GG of the Income Tax Act,1961 talks about the reduction in rent paid on rental property, whether it is furnished or unfounded. The taxpayer should not receive any HRA (House Rent Allowance) from his organization. The above mentioned condition is necessary for the taxpayer to claim deduction under Section.

Conditions For Deduction Under Section 80GG

Following are the conditions for claiming deduction under section 80GG:

A self-governing person can claim deduction only under section.
The person claiming the deduction can be a salaried or self employed person.
In case of a salaried person, one should not get HRA (House Rent Allowance) from his organization.
From 10BA has to be submitted to the Income Tax Department.
The assessee should not in any case have self-occupied property like a house.
Assessment of spouse, minor children or taxpayer, a member of the HUF should not have a comfortable living space where he or she is living under employment or offering occupation or service.

Let’s Understand by examples:

The following are understood through an example of this concept.

One person worked for the initial six months, and after that, he started working as a freelancer. He lived on rented property for the entire year and took HRA, and has no self-owned property. He can claim deduction under Section 80GG and in the present case files Form 10BA for the rent of the last 6 months paid by him.

Purpose of Deduction Under Section 80GG & Filing Form 10BA

For FY 2018-19 and AY 2019-20, the deduction under the section should be at least:

Payment of full rent which is less than 10% of the entire income.
25% annual payroll deduction
Rupee. 5000 monthly (this means it is Rs. 60,000 annually)

Here is a list of requirements for claiming deduction:

The assessee should not in any case have self-occupied property like a house.
A self-governing person can claim deduction only under section.
In case of a salaried person, the person should not obtain HRA (House Rent Allowance) from his organization.
The person claiming the deduction can be a salaried or self employed person.
Assessment of spouse, minor children, or taxpayer, a member of the HUF should not have a comfortable living space where he or she is living under employment or offering occupation or service.
Form 10BA must be submitted to the Income Tax Department.

List of ITR Forms Applicable Under Section 80GG

The list of ITR forms implemented under Section 80GG are as follows:

ITR 1
ITR 2
ITR 3
ITR 4

The expected date for filing ITR has been set as July 31 of the next financial year.

Documents required for filing Form 10BA

Further, to documents including Form 16 and PAN details, file forms are the documents required for filing:

Rent Agreement and Rent Voucher

PAN details of the landlord, if the value of rent is more than Rs. 1 lakh.

Form 10BA is therefore filed which ensures that the landlord is not declaring the benefit of the self-occupied house at the same or any other place.

Procedure for filing Form 10BA

10BA is required to be filed online through an e-filing portal, which is very easy. Following are the online steps to fill the form:

Go to the Income Tax e-filing portal and login through credentials.

Go to the e-file option and choose the income tax form.

Choose Form 10BA from the drop-down menu, and then choose the corresponding assessment year.

Select the submission mode and submit it online.

Then click on Continue.

Enter all the details including the name of the landlord, how much rent has been paid, rent property address etc.

Preview the form and then submit it.

Details required in Form 10BA

The following details are required in Form 10BA:

Taxpayer name

PAN Details

Rental Property Address

Paid the rent

Landlord’s name and address

Conclusion

Form 10BA is a statement that should be filed on the Income Tax website under the e-filing portal. The form is filed to claim deduction under Section 80GG of the Income Tax Act. Thus, it is preferable to file Form 10BA before filing ITR and claim deduction from rent under Section 80GG.

April 29, 2021April 29, 2021

Get Yourself Registered on TDS TRACES Website

The Income Tax Department has introduced the concept of TDS TRACES, in which taxpayers and deductors have explained the entire process as well as can easily download the challan details from here. Apart from this, the mistakes made in the previously filed returns can also be rectified.

Know About TDS TRACES

TRACES, TDS Reconciliation Analysis and Correction Enabling System is in fully expanded form. The Income Tax Department has introduced this online facility to make the process efficient and to rectify the already filed TDS returns. This avoids the task of filing revised returns for the process of rectification, which is a time-consuming process. Taxpayers and deductors can easily access the TRACES website through an online process. One can refer to TDS and TCS paid while filing the return to ask for further details and to check the details.

TDS TRACES Registration

Registration on TDS TRACES can be done as both taxpayers and deductors.

As a Taxpayer

Go to the website (www.tdscpc.gov.in).
Select the taxpayer option and then click Register as a new user.
It is necessary to provide the following details to the applicant:

Name
In case of date of birth or company date of incorporation
PAN Details
Verification Code

After filling in these details, click on proceed.
In addition, the following details are required:

TDS or TCS details through Form 26AS or Form 16 / 16A
Details through Form 26QB
Statement of advance tax, self-assessment tax, TDS on the property paid from the challan.

Go ahead and then provide the applicant’s communication details.
Then create an account and verify the details entered, and click proceed.
The taxpayer will receive an activation link. The message will be sent to the registered email and mobile number by the taxpayer. In this message, click on the link and activate the account from OTP.
After this, TDS TRACES login.

As a Deductor

Visit website (www.tdscpc.gov.in)
Select the deductor option and then click Register as a new user.
Fill in the required details:

TAN
Verification Code.

The system will automatically detect details such as form type, fiscal year and quarterly.

The deductor will be required to enter a TDS Return Token Number or PRN (Provisional Receipt Number).

A valid CIN, BSR code, date of deposit, invoice amount and CD record number are provided along with the challan number.

A maximum of 3 PAN-amount combinations are filed by the deductor and a TDS file has to be submitted against the PAN as well.

The deductor will then have a validation code valid for the previous financial year, quarter and type of form. Enter the authentication code to proceed.

Go ahead and then provide the applicant’s communication details.

Then create an account and verify the details entered, and click proceed.

An activation link will be received on the deductor’s registered email and mobile number. Click on the link that came in the email and mobile messages. Activate the account by receiving OTP.

Then login TDS TRACES and take advantage of the services offered in it.

Use of TDS TRACES

The TDS TRACES website allows taxpayers as well as TDS Deductor to perform various activities, but has some limitations:

TCS / TDS file for rectification

View challan status

Submit refund request online

View and download Form 26AS

Complete online correction of previously filed TDS returns

Check the status of various tax details online

Download the consolidated file, justification report and both Form 16 and 16A.

Online correction of OLTAS challan.

TDS TRACES has transformed the complex and paper-based system that allows taxpayers and deductors to take advantage online.

Facilities available at TDS TRACES

The following are the main facilities offered by TDS TRACES to the taxpayer:

Download Form 26AS and Form 16B

TDS Certificate Verification

The collected TDS compliance report can be studied and downloaded from here.

The facilities offered by TDS TRACES to deductors are:

The status of the challan can be seen

Download Form 16 and Justification Report

Online improvement

TDS Refund

View TDS / TCS Credit against PAN

Declaration of non-filing statement.

TDS Challan Checking Process on TRACES

It is of utmost importance to check the TDS details while filing your quarterly TDS or TCS return. Checking can easily be done by logging into the TRACES account. The status of the challan can be seen by CIN (Challan Identification Number) or BIN (Book Identification Number). By providing a CIN or BIN, the status of the invoice can be seen by the duration of the payment.

Following are the steps to check TDS Challan on Trucks, which are:

Step 1: Log in to the TRACES portal using credentials.

Step 2: Then move the cursor over the statement or payment link in the top menu. Click the status of the invoice from the drop-down menu on it.

Step 3: Check the status of the challan by CIN or BIN.

CIN

In case of CIN, select the CIN option to check the status of the challan. After that choose the payment term and click proceed. A list will appear for the status of the movement, where the details will be found.

BIN

In the case of BIN, select the BIN option to check the status of the challan. Choose the payment term, then click Go. After clicking enter BIN details on the open page, then view consumption details and click on it.

Conclusion

The Income Tax Department has introduced the concept of TDS TRACES, in which taxpayers and deductor can study the challan, as well as download the challan details. TRACES taxpayers can rectify mistakes made in previously filed returns with this new concept and also provide a number of features for deductions on its taxpayers.