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Government allows direct listing of securities by public Indian companies on International Exchanges of GIFT IFSC
January 25th, 2024
Posted By: Team-MMTaxClub

Initiative to boost foreign investment flows, unlock growth opportunities and broaden the investor base for Indian companies

In pursuance of the announcement on July 28, 2023 by Union Minister for Finance and Corporate Affairs Smt. Nirmala Sitharaman to enable direct listing of Indian Companies at GIFT- IFSC exchanges in the first phase, the Department of Economic Affairs (DEA), Ministry of Finance, has amended Foreign Exchange Management (Non-debt Instruments) Rules, 2019, and notified (CLICK HERE FOR NOTIFICATION) the ‘Direct Listing of Equity Shares of Companies Incorporated in India on International Exchanges Scheme’.

Simultaneously, the Ministry of Corporate Affairs (MCA) has issued Companies (Listing of Equity Shares in Permissible Jurisdictions) Rules, 2024 (CLICK HERE FOR NOTIFICATION).

These, together, provide an overarching regulatory framework to enable public Indian companies to issue and list their shares in permitted international exchanges. As of now, the framework allows unlisted public Indian companies to list their shares on an international exchange. SEBI is in the process of issuing the operational guidelines for listed public Indian companies. The international stock exchanges at GIFT-IFSC under the regulatory supervision of IFSCA namely, India International Exchange and NSE International Exchange have been, currently, prescribed as permitted stock exchanges under the Rules and the Scheme.

Earlier, through the Companies (Amendment) Act, 2020, enabling provisions were included in the Companies Act, 2013, to allow direct listing of prescribed class (es) of securities of prescribed class (es) of public companies incorporated in India on permitted stock exchanges in permissible foreign jurisdictions or other prescribed jurisdictions. The enabling provisions of the Companies (Amendment) Act, 2020 were, accordingly, brought into force with effect from 30th October, 2023. 

This policy initiative, to enable listing of Indian companies in GIFT-IFSC, will reshape the Indian capital market landscape and offers Indian companies, especially start-ups and companies in the sunrise and technology sectors, an alternative avenue to access global capital beyond the domestic exchanges. This is expected to lead to better valuation of Indian companies in line with global standards of scale and performance, boost foreign investment flows, unlock growth opportunities and broaden the investor base. The public Indian companies will have the flexibility to access both markets i.e. domestic market for raising capital in INR and the international market at IFSC for raising capital in foreign currency from the global investors. This initiative will particularly benefit Indian companies going global and having ambitions to look at opportunities for expanding their presence in other markets. It is also expected to provide a boost to the capital market ecosystem at GIFT IFSC by provision of new investment opportunities for investors, diversification of financial products and by enhancing liquidity.

(CLICK HERE FOR FAQs ON DIRECT LISTING SCHEME)

ABOUT GIFT-IFSC

GIFT-IFSC is the maiden international financial services centre of India that connects India with global opportunities and also enables the Indian economy to connect with the global financial system and allows seamless and easy flow of global capital into India. To cater to the dynamic development needs of GIFT IFSC, the unified statutory regulatory authority, International Financial Services Centres Authority (IFSCA) has taken significant steps in accelerating global sustainable capital flows by providing an agile and world class regulatory and business environment in GIFT IFSC.

Press Release

Higher Rate of TDS/TCS for Inoperative PAN holder | Income Tax Update
January 25th, 2024
Posted By: Team-MMTaxClub

Income Tax Department in its recent update emphasizes taxpayer should not forget check PAN status of party whose tds is being deducted.

Attention Deducted: Do not forget to check status of PAN of the deductee. Deductee having PAN status of inoperative will attract higher TDS/TCS rate. Refer CBDT Notification No. 15/2023 and Circular No. 3/2023 dated March 28, 2023.

CBIC notified Non-Levy of Customs Duty on the import of hearables Goods for the period February 01, 2022 to April 27, 2023 u/s 28A of the Customs Act
January 25th, 2024
Posted By: Team-MMTaxClub

Notification No. 8/2024 – Customs (N.T.) 24th January, 2024

WHEREAS hearable goods of the description as specified in column (3) of Notification 12/2022-Customs dated 1st February 2022 of the Government of India, Ministry of Finance, Department of Revenue (hereinafter referred to as the said notification), falling within the Chapter or heading or sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the table of the said Notification, when imported into India, were exempted from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the standard rate as specified in the corresponding entry in column (4) of the said Table of the said notification;

AND WHEREAS, the Notification No. 12/2022-Customs, dated the 1st February, 2022 was amended by the Notification 33/2023-Customs, dated the 27th April, 2023 by inserting a proviso therein, as “Provided that the rate of duty specified in Column (4) against the respective description of goods mentioned in Column (3) of the Table above shall apply even when such goods are presented together in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975, subject to the respective conditions specified in column (5)”;

AND WHEREAS, the Central Government is satisfied that according to the practice that was generally prevalent regarding levy of duty (including non-levy thereof) on the said goods when imported in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975 (51 of 1975), were being imported without the duty being levied or collected during the period commencing on and from 1st February, 2022 and ending to 27th April, 2023 under the said Notification 12/2022-Customs dated the 1st February, 2022.

NOW, THEREFORE, in exercise of the powers conferred by section 28A of the Customs Act, 1962 (51 of 1962), the Central Government hereby directs that whole of the duty of customs payable on such goods or, as the case may be, the duty in excess of that payable on such goods, during the period from the 1st February, 2022 to 27th April 2023, when imported in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975, but for the said practice, shall not be required to be paid in respect of import of such hearable goods of the description as specified in column (3) of Notification 12/2022-Customs dated 1st February 2022.

Notification

CBIC notified Non-Levy of Customs Duty on the import of wearables Goods for the period February 01, 2022 to April 27, 2023 u/s 28A of the Customs Act
January 25th, 2024
Posted By: Team-MMTaxClub

Notification No. 7/2024 –Customs (N.T.) dated 24th January, 2024

WHEREAS wearable goods of the description as specified in column (3) of Notification 11/2022-Customs dated 1st February 2022 of the Government of India, Ministry of Finance, Department of Revenue (hereinafter referred to as the said notification), falling within the Chapter or heading or sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as specified in the corresponding entry in column (2) of the table of the said Notification, when imported into India, were exempted from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the standard rate as specified in the corresponding entry in column (4) of the said Table of the said notification;

AND WHEREAS, the Notification No. 11/2022-Customs, dated the 1st February, 2022 was amended by the Notification No. 33/2023-Customs, dated the 27th April, 2023, by inserting a proviso therein, as “Provided that the rate of duty specified in Column (4) against the respective description of goods mentioned in Column (3) of the Table above shall apply even when such goods are presented together in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975, subject to the respective conditions specified in column (5)”;

AND WHEREAS, the Central Government is satisfied that according to the practice that was generally prevalent regarding levy of duty (including non-levy thereof) on the said goods when imported in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975 (51 of 1975), were being imported without the duty being levied or collected during the period commencing on and from 1st February, 2022 and ending to 27th April, 2023 under the said Notification 11/2022-Customs dated the 1st February, 2022.

NOW, THEREFORE, in exercise of the powers conferred by section 28A of the Customs Act, 1962 (51 of 1962), the Central Government hereby directs that whole of the duty of customs payable on such goods or, as the case may be, the duty in excess of that payable on such goods, during the period from the 1st February, 2022 to 27th April 2023, when imported in a manner so as to attract the provision of rule 2(a) of the General Rules of Interpretation of the First Schedule of the Customs Tariff Act, 1975, but for the said practice, shall not be required to be paid in respect of import of such wearable goods of the description as specified in column (3) of Notification 11/2022-Customs dated 1st February 2022.

Notification

CBDT notified the income tax exemption to “State Legal Service Authority Union Territory Chandigarh” u/s 10(46) of the IT Act
January 24th, 2024
Posted By: Team-MMTaxClub

In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, ‘State Legal Service Authority Union Territory Chandigarh’ (PAN: AAAGS1716A), an Authority constituted by the Administrator, Union Territory, Chandigarh under the Legal Services Authority Act, 1987 (Central Act 39 of 1987), in respect of the following specified income arising to the said Authority, as follows:

(a) Grants received from the Punjab and Haryana High Court, Central Authority i.e. National Legal Services Authority constituted under Legal Services Authorities Act, 1987;

(b) Grants or donation received from the Central Government or the State Government of Punjab/Haryana for the purpose of the Legal Services Authorities Act, 1987;

(c) Amount received under the order of the court;

(d) Fees received as recruitment application fee; and

(e) Interest earned on bank deposits.

2. This notification shall be effective subject to the conditions that State Legal Service Authority Union Territory Chandigarh –

(a) shall not engage in any commercial activity;

(b) activities and the nature of the specified income shall remain unchanged throughout the financial years; and

(c) shall file return of income in accordance with the provision of clause (g) of sub-section (4C) of section 139 of the Income-tax Act, 1961.

3. This notification shall be deemed to have been applied for assessment years 2021-2022, 2022-2023 and 2023-2024 relevant for the financial years 2020-2021, 2021-2022 and 2022-2023 respectively.

Explanatory Memorandum

It is certified that no person is being adversely affected by giving retrospective effect to this notification.

Notification