Insights
November 25, 2016

RECENT UPDATES ON MFN, THE CYPRUS TREATY AND TAXABILITY OF OFFSHORE SUPPLY

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,…

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Tax
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November 17, 2016

CHANGES TO THE FOREIGN INVESTMENT AND BORROWINGS REGULATIONS

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…

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Corporate/M&A Private Equity and Venture Capital
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November 9, 2016

INDIA DEMONETIZES INR500 AND INR1000 NOTES – MOVING TOWARDS A CASHLESS ECONOMY

Major Reform In a big bang reform, effective midnight of November 9, 2016, the Indian government has banned INR500 and INR1000 currency notes (the “Banned Notes”).  The decision has been taken to root out fake currency and cash (black) money, and eliminate corruption, terror funding and money laundering, which has been hurting India’s economy for decades….

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Corporate/M&A Tax
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October 17, 2016

SIMPLIFIED PROCESS FOR INCORPORATING COMPANIES

Introduction In the last couple of years, the Indian government has taken many initiatives to ease the process of incorporating a company in India and reduce the time frame to establish a business in India.  On October 1, 2016, the Ministry of Corporate Affairs of the Government of India (the “MCA”) amended the Companies (Incorporation)…

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Corporate/M&A
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September 16, 2016

SEBI CAUTIONS ONLINE CROWDFUNDING PLATFORMS; CLARIFIES APPLICABILITY OF INSIDER TRADING REGULATIONS

This update discusses the implications of a recent cautionary notice issued by the Securities and Exchange Board of India (the “SEBI”) in respect of equity funding websites catering to the capital requirements of Indian start-ups. Further, this update also discusses an informal guidance order issued by the SEBI to HDFC Bank Limited (“HDFC Bank”) in…

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Corporate/M&A
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September 7, 2016

INDIAN TAX BENEFITS ON AMALGAMATIONS APPLIED TO FOREIGN COMPANIES – AN IMPORTANT DEVELOPMENT

Introduction  In a recent ruling in the case of Banca Sella SpA (AAR No. 1130 of 2011 dated August 17, 2016), India’s Authority for Advance Rulings (“AAR”) has held that, although the Indian branch office (“IBO”) of a foreign company is a capital asset for tax purposes, the transfer of a branch office in a…

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Corporate/M&A Tax
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September 1, 2016

DOES THE ARBITRATION AND CONCILIATION (AMENDMENT) ACT, 2015 APPLY TO COURT PROCEEDINGS FILED BEFORE ITS COMMENCEMENT?

Introduction  Recently, in three (3) identical matters (two (2) of which were filed by the Board of Control for Cricket in India (“BCCI”) against Rendezvous Sports World and Kochi Cricket Private Limited, respectively,) where the award-debtors sought to dismiss the applications to enforce the arbitral awards under the Arbitration and Conciliation Act, 1996 (the “Arbitration…

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Disputes and Arbitration
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July 28, 2016

THE INDIAN REAL ESTATE SECTOR: AN OVERVIEW

Introduction  The real estate sector is the driving force behind the growth of the Indian economy.  It is the second largest employment generator and GDP contributor in the country.  In the most generic sense, real estate business means buying and selling of properties (residential and commercial), which consist of land, buildings, natural resources attached, etc….

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Corporate/M&A
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July 15, 2016

CBDT NOTIFIES RULES ON FAIR MARKET VALUE

Introduction Reducing tax litigation has been a key focus area for the Modi government.  Several initiatives have been taken by the Central Board of Direct Taxes (the “CBDT”) in the recent past to significantly reduce disputes and provide relief to taxpayers involved in tedious litigation with the revenue authorities. The CBDT has also issued several…

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Tax
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June 24, 2016

INDIA EASES FOREIGN INVESTMENT NORMS IN DEFENCE, PHARMACEUTICALS, AND OTHER KEY SECTORS

Introduction India’s foreign investment regime has been liberalized significantly in the last couple of years.  On June 20, 2016, the Indian government announced a host of reforms to further liberalize foreign investment in the defence, pharmaceuticals, retail trading, civil aviation and broadcasting carriage services sectors, as also in private security agencies, and the Department of…

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Foreign Investment
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