Tax
July 23, 2020

TAXATION OF SECONDED EMPLOYEE SALARY REIMBURSEMENTS AND PERMANENT ESTABLISHMENT IMPACT

In the recent case of Yum Restaurants (Asia) Pte, the Delhi Income Tax Appellate Tribunal (Delhi Tribunal) has held that payments received by a Singapore company from an Indian group company towards salary reimbursement costs in the case of a seconded employee is not in the nature of “fees for technical services” and, therefore, not…

Tags:
Tax
VIEW MORE
July 13, 2020

M&A IN STRESSED INDIAN COMPANIES – WILL THE SEBI AMENDMENTS HELP?

The SEBI has permitted stressed companies to undertake a preferential issue at a price, which is the average of the weekly high and low of the volume-weighted average price (“VWAP”) of its equity shares during the preceding two (2) weeks. In order to be eligible to avail of the foregoing relaxation, a stressed company must…

Tags:
Corporate/M&A
VIEW MORE
July 6, 2020

MEASURES TAKEN BY INDIA’S SECURITIES REGULATOR TO EASE CAPITAL RAISING BY LISTED COMPANIES

After the nationwide lockdown was imposed in the third week of March, India’s Securities and Exchange Board of India (the “SEBI”) has been quick-thinking in introducing a slew of relaxations for the securities market with a focus to lessen the burden of listed companies and market intermediaries. In this update, we analyze the key measures…

Tags:
Covid-19
VIEW MORE
June 24, 2020

THE AMRAPALI FRAUD – INDIA’S FOREIGN INVESTMENT AND MONEY LAUNDERING LAWS SHOULD NOT BE TAKEN LIGHTLY BY INVESTORS

Foreign investment in India is regulated by the Ministry of Finance and the Reserve Bank of India (RBI), and foreign investors have a strict onus of complying with India’s Foreign Exchange Management Act, 1999 (FEMA), and its rules and regulations. Any breach of the FEMA rules and regulations can result in penalties being levied against…

Tags:
Foreign Investment, Insolvency and Restructuring
VIEW MORE
June 17, 2020

SUSPENSION OF INDIA’S INSOLVENCY AND BANKRUPTCY CODE – WILL IT ADD TO THE PROBLEM?

On June 5, 2020, the Indian government promulgated the Insolvency and Bankruptcy Code (Amendment) Ordinance, 2020 (the “Ordinance”). The Ordinance has been promulgated as a part of the economic package announced by India’s Finance Minister last month. The Ordinance indefinitely bars the initiation of insolvency proceedings under the Insolvency and Bankruptcy Code, 2016 (the “Code”),…

Tags:
Insolvency and Restructuring
VIEW MORE
June 9, 2020

M&A IN INDIA POST-LOCKDOWN – TRENDS AND ISSUES

Distress Currently, the one word that best describes the situation of many Indian companies and businesses is “distress”. The two-plus months of a fairly stringent lockdown in most major Indian metros, including Mumbai (which contributes 6% of India’s GDP), has badly impacted several businesses. The measured relaxation of the lockdown feels like the aftermath of…

Tags:
Corporate/M&A, Covid-19
VIEW MORE
June 1, 2020

THE AFTERMATH OF COVID-19 IN INDIA: EMPLOYMENT LAW HAS ASSUMED GREATER IMPORTANCE THAN EVER BEFORE

India is the fifth-largest economy in the world with a workforce of 400 million. Several companies across the world have wholly-owned subsidiaries in India, mainly in sectors like IT and IT-enabled services, financial services, consulting, insurance and healthcare. A large number of multinational companies depend on their Indian subsidiaries and group companies for back-office support….

Tags:
Covid-19, Employment Law
VIEW MORE
May 8, 2020

WHEN CAN A LIAISON OFFICE OR A PLACE OF BUSINESS BE TAXED IN INDIA?

In the recent case of the UAE Exchange Centre, India’s Supreme Court (SC) highlighted the principles surrounding the taxability of foreign entities having a liaison office or a place of business in India. It should not be presumed that a liaison office will not constitute a permanent establishment in India merely because the Reserve Bank…

Tags:
Tax
VIEW MORE
May 4, 2020

INDIA EASES RESTRICTIONS ON WORKPLACES IN THE THIRD PHASE OF LOCKDOWN

On May 1, 2020, the Indian government further extended the ongoing countrywide lockdown until May 17, 2020. The third phase of the lockdown is based on demarcation of districts into three (3) zones and reasonably well-defined exemptions for each zone under the revised guidelines (the “Revised Guidelines”) issued yesterday. The Revised Guidelines will be effective…

Tags:
Covid-19, Employment Law
VIEW MORE
April 29, 2020

SCRUTINY OF CHINESE INVESTMENTS IN INDIA – IMPACT DECODED

On April 17, 2020, India’s Department for Promotion of Industry and Internal Trade issued a press note amending the foreign direct investment (FDI) rules applicable to investments from countries having a land border with India. Following this, the Ministry of Finance issued a notification in the official gazette on April 22, 2020 (Notification) to amend…

Tags:
Foreign Investment
VIEW MORE