DELHI TRIBUNAL AFFIRMS TAX ON INDIRECT SHARE TRANSFERS DERIVING VALUE FROM ASSETS IN INDIA
Under the provisions of the Income-tax Act, 1961 (the “IT Act”), the income of a non-resident is deemed to accrue or arise in India, inter alia, if it arises, directly or indirectly, through the transfer of a capital asset situated in India. The Finance Act, 2012, introduced an explanation to section 9(1)(i) of the IT Act, under which an indirect transfer of shares or an interest in a company or entity registered or incorporated outside India substantially deriving its value from assets located in India was subjected to capital gains tax in India on the theory that the offshore capital asset would be regarded as situated in India if it substantially derived its value (directly or indirectly) from assets located in India.
IMPORTANT CHANGES USHERED IN BY INDIA’S NEW TRADE MARKS RULES
On March 6, 2017, the Government of India (the “Government ”) notified the Trade Marks Rules, 2017 (the “2017 Rules ”), which replace the Trade Marks Rules, 2002 (the “ 2002 Rules”) and revamp the regime for trade mark filings in India. The Trade Marks Rules (both, 2002 and 2017) are formulated by the Government under the Trade Marks Act, 1999 (the “Act”), and specify the procedure to be followed for various matters, including applying, renewing or assigning trademarks and rectification of the trade marks register. In this update, we present a snapshot of the key features of the 2017 Rules and their impact on stakeholders.
INDIA – THE DAWN OF A NEW ERA IN REMEDIES FOR THE CONSUMER
Consumers in the real estate sector, particularly the residential real estate sector, often find themselves locking horns with builders or developers from whom they have purchased apartments in residential buildings. Grievances of consumers have commonly been for delayed possession of the housing space purchased, poor quality of construction, failure to meet assured standards, etc. Remedying these grievances has required either approaching the ordinary civil courts or alternate forums established under the Consumer Protection Act, 1986 (the “ Act”).
INDIA BUDGET 2017-18 – KEY HIGHLIGHTS
India’s Union Budget (the “Budget”) was announced on February 1, 2017, and the Finance Bill, 2017 (the “ Finance Bill”) was tabled in Parliament. Most of the income tax proposals in the Finance Bill will be effective from the financial year commencing on April 1, 2017, unless specified otherwise. The Finance Bill will be discussed in Parliament before its enactment, and therefore, it is likely that the Finance Bill may be amended as a result of these discussions.
PENALTIES IN COMPETITION LAW VIOLATIONS IN INDIA
In June 2011, the Indian government implemented the merger control regime under the Competition Act, 2002 (the “Act“) and the Competition Commission of India (Procedure in regard to the transaction of business relating to combinations) Regulations, 2011 (the ” Regulations“). While the Competition Commission of India (the “CCI“) is a fairly young regulator, over the years, the jurisprudence on Indian competition law and the merger control regime has developed substantially.
THE INDIA-SINGAPORE TAX TREATY HAS BEEN AMENDED
The bilateral double taxation avoidance agreement between India and Singapore (the “Singapore DTAA”) has been amended. On December 30, 2016, India’s Central Board of Direct Taxes announced the signing of the protocol (the “Protocol”) amending the Singapore DTAA. The Protocol will be effective from April 1, 2017. Although the text of the Protocol is awaited (as it has not as yet been ratified by the India’s Ministry of Finance), the key changes to the Singapore DTAA and their impact are listed below.
MINORITY SQUEEZE OUT UNDER THE COMPANIES ACT, 2013
On December 7, 2016, the Indian government notified several provisions of the Companies Act, 2013 (the “2013 Act”), including provisions on variation of shareholders’ rights, reduction of capital, mergers and amalgamations, winding up by the National Company Law Tribunal, and appointment of official liquidators, all effective from December 15, 2016. With this, Sections 235 and…
INDIA – SECURITIES LAW UPDATE
Introduction On November 23, 2016, the Securities and Exchange Board of India (the “SEBI”) approved several important changes to Indian securities regulations, including, an amendment to the SEBI (Alternative Investment Fund) Regulations, 2012 (the “AIF Regulations”) to ease the requirements for investment in start-ups by angel funds, an amendment to the SEBI (Foreign Portfolio Investor)…
INDIA – IMPORTANT TAX UPDATES
There have been a number of important tax developments and cases in India over the last couple of months. In this update, we provide snippets on the new India-Cyprus tax treaty and other key direct tax cases. India-Cyprus Tax Treaty The double taxation avoidance agreement between India and Cyprus has been revised on November 18,…
INDIA – FOREIGN EXCHANGE REGULATORY UPDATE
Introduction This update discusses certain key changes to India’s foreign exchange regulations implemented recently. Foreign investment in financial services Recently, the Reserve Bank of India (the “RBI”) notified an amendment to the Foreign Exchange (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (the “Foreign Investment Regulations”) permitting 100% foreign investment…