Knowledge Center

  • External Commercial Borrowings by Holding Companies/Core Investment Companies for Infrastructure project use in Special Purpose Vehicles (SPVs)

    December 4 2013

    RBI comes out with a circular permitting Holding Companies/ Core Investment Companies (CICs) to raise ECB under the automatic route/approval route for project use in SPV subject to certain terms and conditions:

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  • Submission of Form A-3 by SEZs and its Time Limit

    November 27 2013

    As per notification 12/2013 service provided to the SEZ developer or to the service tax unit shall be exempted from the levy of service tax . The modalities of  providing the said exemption was as follows:

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  • Third Party payments for import/export transactions allowed by RBI

    November 19 2013

    • RBI comes out with a circular allowing third party payments for export/import transactions.
    • Normally payment for exports has to be received from the overseas buyer named in the Export Declaration Form (EDF) by the exporter and the payment shall be received in a currency appropriate to the place of final destination as mentioned in the EDF irrespective of the country of residence of the buyer. Similarly, the payments for the import should be made to the original overseas seller of the goods and the AD should ensure that the importer furnishes evidence of import, such as, Exchange Control copy of the Bill of Entry to satisfy itself that goods equivalent to the value of remittance have been imported.
    • Taking into account the evolving international trade practices the said requirement has been liberalised by RBI and has allowed third party payments for import/export transactions subject to satisfying certain conditions.
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  • Recent Developments with respect to withholding tax u/s 195 on payments to non-residents_A co-authored article published in Taxmann International Taxation Journal

    October 23 2013

    Withholding Tax under section 195 on payments to Non-residents has always remained a subject matter of Interpretation & accordingly has been a controversial matter. Further forms for issuance of the remittance certificates by Chartered Accountants have been amended to include details of tax residency certificate and PAN of the non- resident where benefit of any treaty is sought to be taken.

    A co-authored article published by Taxmann's International Taxation journal is an attempt to understand the recent trends & developments in withholding tax u/s 195.


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  • ECB’s available to a wider spectrum under Infrastructure Sector

    September 19 2013

    Further to our updates on 5th September, 2013 "Restrictions on end use of ECB liberalized" RBI has has taken a step further to attract use of ECB's in India Inc. Infrastructure Space.

    RBI has widened the definition of Infrastructure Sector so as to add new areas where availing of ECB's is now permitted. Accordingly, the expanded definition includes the following:

    1. Energy Sector: (i) electricity generation, (ii) electricity transmission, (iii) electricity distribution, (iv) oil pipelines, (v) oil/gas/liquefied natural gas (LNG) storage facility (includes strategic storage of crude oil) and (vi) gas pipelines (includes city gas distribution network);
    2. Communication Sector:(i) mobile telephony services / companies providing cellular services, (ii) fixed network telecommunication (includes optic fibre / cable networks which provide broadband / internet) and (iii) telecommunication towers;
    3. Transportation Sector:(i) railways (ii) roads and bridges, (iii) ports, (iv) inland waterways, (v) airport and (vi) urban public transport
    4. Water and sanitation:(i) water supply pipelines, (ii) solid waste management, (iii) water treatment plants, (iv) sewage projects (sewage collection, treatment and disposal system), (v) irrigation (dams, channels, embankments, etc.) and (vi) storm water drainage system;
    5. Social and commercial infrastructure:(i) hospitals, (ii) Hotel Sector, (iii) common infrastructure for industrial parks, SEZs, tourism facilities, (iv) fertilizer (capital investment), (v) post harvest storage infrastructure for agriculture and horticulture produce including cold storage, (vi) soil testing laboratories and (vii) cold chain
    6. Others
      1. (i) mining, (ii) exploration and (iii) refining;
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  • Revision in Declaration forms for Export of Goods/Softwares

    September 13 2013

    • RBI comes out with a circular revising the declaration forms used for Export of Goods/software:
    • The erstwhile exemption for exporters exporting less than US$25000 has been withdrawn. Every exporter is now required to file the revised declaration forms regardless of the quantum of amount
    • A common form called " Export Declaration Form" (EDF) has been devised to declare all types of export of goods from Non-EDI ports & a common "Softex form " to declare single as well as bulk software exports.
    • Extension of facilities to exporters for online generation of SOFTEX Form No (single as well as bulk) for use in off-site software exports, in addition to EDF Form No.
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