Blog Posts
-
Consolidated FDI Regime Operational
[Posted by Umakanth Varottil] As we had discussed in December 2009, the Government had proposed a draft master press note to consolidate the regime relating to foreign direct investment (FDI). The consolidation exercise has now fructified with the issue of the Consolidated FDI Policy (Circular 1 of 2010), which takes effect from April 1, 2010.…
-
Taxation of Derivative Transactions by FIIs
[Posted by Umakanth Varottil] (The following post has been contributed by Ravichandra S. Hegde of J. Sagar Associates) Profits earned from derivative transactions are business income, not liable to be taxed in India at the hands of the FII: AARThe Authority for Advance Rulings (“AAR”), Income Tax, in its recent decision dated March 22, 2010…
-
The Supreme Court on Penalty
[Posted by Shantanu Naravane] Earlier posts had discussed the decision of the Supreme Court in Dharmendra Textiles, and its subsequent interpretation by the High Courts and Tax Tribunals. One of the most important reading downs was seen in the decision of Mumbai Bench of the ITAT, in ACIT v. VIP Industries. The Tribunal there considered…
-
IDR Offering Document
[Posted by Umakanth Varottil] Here is the draft red herring prospectus for the first ever offering of Indian depository receipts (IDRs) proposed by Standard Chartered Bank. Particularly interesting is the section titled “Frequently Asked Questions on the IDR Facility” on pages 42-51 that provides details of operation of the IDR mechanism.
-
Governance Norms for Central PSUs
[Posted by Umakanth Varottil] In 2007, the Central Government issued the Guidelines on Corporate Governance for Central Public Sector Enterprises (CPSEs). This was a measure introduced to bring corporate governance norms in CPSEs on par with the private sector. However, it was only a voluntary measure. On March 25, 2010, the Government announced that the…
-
E*Trade Mauritius: Reaffirming legal form over economic substance
[Posted by Mihir Naniwadekar] The Authority of Advance Rulings has issued its ruling in the matter of E*Trade Mauritius; and the Ruling essentially follows the decision of the Supreme Court in Azadi Bachao Andolan. The facts before the Authority were that the Applicant was a company incorporated in the Mauritius, and had been issued a Tax Residency Certificate…
-
The Delhi High Court Departs from Samsung Electronics
[Posted by Shantanu Naravane] One of the most pressing issues pending consideration of the Supreme Court is the appeal from the decision of the Karnataka High Court in Samsung Electronics. Earlier posts have considered whether the interpretation of section 195 proposed by the High Court is appropriate, and also the admission of the appeal by…
-
Air Travel, International Airlines and Liabilities
[Posted by Umakanth Varottil] (The following post comes to us from Sumit Agrawal, who is an alumnus of the National Law University, Jodhpur and associated with the Securities and Exchange Board of India (SEBI) as Legal Officer in its Integrated Surveillance Department. Views expressed herein are his own. Email: mailsumitagrawal@gmail.com) Losing luggage on foreign land…
-
Stamp Duty on Amalgamations
[Posted by Umakanth Varottil] The Mint has a column by Heena Singhvi that discusses the often contentious issue of whether stamp duty is payable on an order the High Court sanctioning a scheme of amalgamation between two or more companies. Of greater relevance is the discussion of the Delhi High Court decision in Delhi Towers…