Notifications & Circulars
Press Information Bureau
23.03.2017
Direct Taxation
Third Protocol Amending India-Singapore DTAA notified
MANU/PIBU/0243/2017
The Third Protocol amending India-Singapore Double Taxation Avoidance Agreement (DTAA) which was signed on 30th December, 2016, has come into force on 27th February 2017. The same has been notified in the Official Gazette today.
The India-Singapore DTAA at present provides for residence based taxation of Capital Gains of shares in a company. The Third Protocol amends the DTAA with effect from 01st April, 2017 to provide for source based taxation of capital gains arising on sale of shares in a company. This will curb revenue loss, prevent double non-taxation and streamline the flow of investments. In order to provide certainty to investors, investments in shares made before 01st April, 2017 have been grandfathered subject to fulfilment of conditions in Limitation of Benefits clause as per 2005 Protocol. Further, a two-year transition period from 1st April, 2017 to 31st March, 2019 has been provided during which capital gains on shares will be taxed in source country at half of normal tax rate, subject to fulfilment of conditions in Limitation of Benefits clause.
The Third Protocol also inserts Article 9(2) in the DTAA which would facilitate relieving of economic double taxation in transfer pricing cases. This is a taxpayer friendly measure and is in line with India's commitments under Base Erosion and Profit Shifting (BEPS) Action Plan to meet the minimum standard of providing Mutual Agreement Procedure (MAP) access in transfer pricing cases. The Third Protocol also enables application of domestic law and measures concerning prevention of tax avoidance or tax evasion.
Tags : Double Taxation Protocol Amendment
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Securities and Exchange Board of India
23.03.2017
Capital Market
Schemes of Arrangement by Listed Entities and (ii) Relaxation under Sub-rule (7) of Rule 19 of the Securities Contracts (Regulation) Rules, 1957
MANU/SSMD/0009/2017
This is with reference to SEBI Circular No.CFD/DIL3/CIR/2017/21 dated March 10, 2017 on the captioned subject. Para 8 of the aforesaid circular provides that the pricing provisions of Chapter VII of SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2009 shall be followed in case of issuance of shares to a select group of shareholders or shareholders of unlisted companies pursuant to such schemes. It is now clarified that the 'relevant date' for the purpose of computing pricing shall be the date of Board meeting in which the scheme is approved. The Stock Exchanges are advised to bring the provisions of this circular to the notice of Listed Entities and also to disseminate the same on their website. This circular is issued under Section 11 of the SEBI Act, 1992 and regulations 11, 37 and 94 read with regulation 101(2) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 and Rule 19(7) of Securities Contracts (Regulation) Rules, 1957. This circular is available on SEBI website. under the categories "Legal Framework/Circulars".
Tags : Entities Scheme Arrangement
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Press Information Bureau
22.03.2017
Service
Maternity Leave in Private Sector
MANU/PIBU/0237/2017
Maternity benefits to workers in the private sector are regulated under Employees' State Insurance (ESI) Act, 1948 and Maternity Benefit (MB) Act, 1961. The Government has already enhanced paid maternity leave from 12 weeks to 26 weeks for up to two surviving children under the ESI Act, 1948 vide notification dated 20.01.2017. So far as enhanced benefits under MB Act, 1961 are concerned, the Government introduced Maternity Benefit (Amendment) Bill, 2016 before Rajya Sabha. The said Bill was passed by the Rajya Sabha on 11.08.2016 and Lok Sabha has also passed the Bill with some amendments on 09.03.2017. Both the Acts provide for protection of rights of working women through robust and proper mechanism including inspections by the field officers. The Acts provide for stringent penalties, including imprisonment, for violations of its provisions to ensure proper implementation. This information was given by Shri Bandaru Dattatreya, the Minister of State (IC) for Labour and Employment, in written reply to a question in Rajya Sabha today.
Tags : Leave Maternity Private sector
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Press Information Bureau
22.03.2017
Civil
Strict compliance of 'Flag Code of India, 2002' and 'The Prevention of Insults to National Honour Act, 1971'
MANU/PIBU/0238/2017
The Ministry of Home Affairs has issued an Advisory to the Chief Secretaries/Administrators of all State Governments/UT Administrations, Secretaries of all Ministries / Departments of Government of India, reiterating to ensure strict compliance of the provisions contained in the 'Flag Code of India. 2002' and 'The Prevention of Insults to National Honour Act, 1971'. The Advisory directs that mass awareness programmes be carried out in this regard and also give wide publicity through advertisements in the electronic and print media.
The Advisory states that the National Flag represents hopes and aspirations of the people of our country and hence should occupy a position of honour. There is universal affection and respect for, and loyalty to, the National Flag. Yet, a perceptible lack of awareness is often noticed amongst the people as well as organizations/agencies of the Government, in regard to laws, practices and conventions that apply to 'display of the National Flag'.
Further, it has been brought to notice of the MHA that on important events, the National Flags made of plastic are also being used in place of paper Flags. Since, the plastic flags are not biodegradable like paper flag, these do not get decomposed for a long time and ensuring appropriate disposal of National Flags made of plastic commensurate with dignity of the flag, is a practical problem. It may also be noted that as per Section 2 of 'The Prevention of insults to National Honour Act. 1971' - Whoever in any public place or in any other place within public view burns, mutilates, defaces, defiles, disfigures, destroys, tramples upon or otherwise shows disrespect to or brings into contempt (whether by words, either spoken or written, or by acts) the Indian National Flag or any part thereof, shall be punished with imprisonment for a term which may extend to three years, or with fine, or with both.
The Advisory states that on important national, cultural and sports events, Flags made of paper only are used by public in terms of the provisions of the 'Flag Code of India, 2002' and such paper Flags are not discarded or thrown on the ground after the event. Such Flags are to be disposed of, in private, consistent with the dignity of the Flag. Wide publicity, for not using the National Flag made of plastic, should be made along with its advertisement in the electronic and print media.
Tags : Flag code Compliance Strict
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Press Information Bureau
22.03.2017
Education
Cabinet approves amendment to 'The Right of Children to Free and Compulsory Education Act, 2009'
MANU/PIBU/0239/2017
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the amendment to Right of Children to Free and Compulsory Education (RTE) Act, 2009. This will ensure that all teachers, in position as on 31st March, 2015, acquire the minimum qualifications prescribed by the academic authority to extend the period for such training for four years up to 31st March, 2019.
This will enable the in-service untrained elementary teachers to complete their training and ensure that all teachers at the elementary level in the country have a certain minimum standard of qualifications. This would also ensure that all Teachers would attain minimum qualifications as considered necessary to maintain the standard of teaching quality. This would ultimately result in improvement in overall quality of teachers, teaching processes and consequently learning outcomes of children. This will reinforce the Government's emphasis on improvement of quality of elementary education.
Background:
The Right of Children to Free and Compulsory Education (RTE) Act, 2009, is effective from 1st April, 2010. It envisages free and compulsory elementary education to every child in the age group of 6-14 years. The Proviso to Section 23(2) of the Act specifies that all teachers at elementary level who, at the commencement of this Act, did not possess the minimum qualifications as laid down under the RTE Act, need to acquire these within a period of five years i.e., 31st March, 2015. However, several State governments have reported that out of a total number of 66.41 lakh teachers at the elementary level, 11.00 lakh are still untrained (of this, 5.12 lakh are in Government and Aided Schools and 5.98 lakh are in private schools). In order to ensure that all teachers, in position as on 31st March, 2015, acquire the minimum qualifications prescribed by the academic authority, it is necessary to carry out appropriate amendment in the RTE Act, 2009 to extend the period for such training for four years up to 31st March, 2019.
Tags : Free Education Amendment Approval
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Press Information Bureau
22.03.2017
Civil
Cabinet approves proposal for Amendments to the NABARD Act, 1981
MANU/PIBU/0241/2017
Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following proposals:
(a) Amendments to National Bank for Agriculture and Rural Development Act, 1981 as proposed in the draft Bill with such changes of drafting and of consequential nature, as may be considered necessary by Legislative Department. The Amendments, include provisions that enable Central Government to increase the authorized capital of NABARD from Rs. 5,000 crore to Rs. 30,000 crore and to increase it beyond Rs. 30,000 crore in consultation with RBI, as deemed necessary from time to time.
(b) Transfer of 0.4 per cent. equity of RBI in NABARD amounting to Rs. 20 crores to the Government of India.
The proposed amendments in NABARD Act, include, certain other amendments including changes in long title and certain Sections to bring Medium Enterprises and Handlooms in NABARD's mandate.
The proposed increase in the authorized capital would enable NABARD to respond to the commitments it has undertaken, particularly in respect of the Long Term Irrigation Fund and the recent Cabinet decision regarding on-lending to cooperative banks. Further, it will enable NABARD to augment its business and enhance its activities which would facilitate promotion of integrated rural development and securing prosperity of rural areas including generation of more employment.
The transfer of entire shareholding in NABARD held by RBI to the Central Government will remove the conflict in RBI's role as banking regulator and shareholder in NABARD.
Tags : Enactment Amendment Approval
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Press Information Bureau
20.03.2017
Indirect Taxation
Review of implementation of SEZ Policy
MANU/PIBU/0227/2017
Ongoing review and reform, as necessary, of Government policy and procedure is inherent to Public Policy. The Government, on the basis of inputs/suggestions received from stakeholders on the policy and operational framework of the SEZ Scheme, periodically reviews the policy and operational framework of SEZs and takes necessary measures so as to facilitate speedy and effective implementation of SEZ policy. Whenever, SEZ policy is reviewed, efforts are made to maintain a level playing field for Domestic Tariff Area industries vis-a-vis SEZ units/Developers.
The following initiatives have been taken in recent years for implementation of the SEZ policy in the country and resolve the issues therein:
i. Minimum Land Area requirement for setting up of new SEZs has been reduced to 50% for Multi-product and Sector-specific SEZs.
ii. Sectoral broad-banding has been introduced to encompass similar / related areas under the same Sector.
iii. A new sector 'agro-based food processing' sector has been introduced to encourage agro-based industries in SEZs.
iv. Dual use of facilities like Social & Commercial infrastructure by SEZs and non-SEZs entities has been allowed in order to make SEZ operations more viable.
v. Online processing of various activities relating to SEZ Developers and Units has been introduced for improving ease of doing business.
This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.
Tags : Policy Review SEZ
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Press Information Bureau
20.03.2017
Commercial
India-EU Free Trade Negotiations
MANU/PIBU/0228/2017
India- European Union Broad-based Bilateral Trade and Investment Agreement (India- EU BTIA) negotiation started in 2007 and after sixteen rounds of negotiations (the last being in 2013), EU withdrew from the negotiations due to some outstanding issues. Four rounds of stocktaking meetings of India- EU BTIA negotiation have been held since January, 2016 - on 18th January, 2016 (in New Delhi), 22nd February, 2016 (in Brussels), 15th July, 2016 (in New Delhi) and 9th November, 2016 (in New Delhi) in order to proceed with the negotiations. India is committed to an early and balanced outcome of the India- EU BTIA negotiations. This information was given by the Commerce and Industry Minister Smt. Nirmala Sitharaman in a written reply in Lok Sabha today.
Tags : Negotiations Free trade Bilateral
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Reserve Bank of India
20.03.2017
Banking
Master Directions on Issuance and Operation of Prepaid Payment Instruments in India
MANU/RMIC/0022/2017
As you are aware, the Reserve Bank of India has, from time to time, issued a number of circulars containing policy guidelines on Issuance and Operation of Prepaid Payment Instruments (PPIs) in India. These Master Directions have been prepared to facilitate the Prepaid Payment Instrument Issuers, System Providers, System Participants and all other Prospective Prepaid Payment Instrument Issuers to have all the extant instructions on the subject at one place. The Master Directions have been prepared by incorporating all the instructions/guidelines issued on Issuance and Operation of Prepaid Payment Instruments in India up to February 28, 2017 along with certain revisions and additions to the extant instructions. The Master Directions, issued under Section 18 read with Section 10(2) of Payment and Settlement Systems Act, 2007, has been placed on the RBI web-site. A list of circulars finding reference in these Master Directions is enclosed as Appendix.
Tags : Direction Pre-paid payments Operations
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Press Information Bureau
20.03.2017
Indirect Taxation
Cabinet approves four GST Bills
MANU/PIBU/0231/2017
The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the following four GST related bills:
1. The Central Goods and Services Tax Bill 2017 (The CGST Bill)
2. The Integrated Goods and Services Tax Bill 2017 (The IGST Bill)
3. The Union Territory Goods and Services Tax Bill 2017 (The UTGST Bill)
4. The Goods and Services Tax (Compensation to the States) Bill 2017 (The Compensation Bill)
The above four Bills have been earlier approved by the GST Council after thorough, clause by clause, discussion over 12 meetings of the Council held in the last six months.
The CGST Bill makes provisions for levy and collection of tax on intra-state supply of goods or services for both by the Central Government. On the other hand, IGST Bill makes provisions for levy and collection of tax on inter-state supply of goods or services or both by the Central Government. The UTGST Bill makes provisions for levy on collection of tax on intra-UT supply of goods and services in the Union Territories without legislature. Union Territory GST is akin to States Goods and Services Tax (SGST) which shall be levied and collected by the States/Union Territories on intra-state supply of goods or services or both. The Compensation Bill provides for compensation to the states for loss of revenue arising on account of implementation of the goods and services tax for a period of five years as per section 18 of the Constitution (One Hundred and First Amendment) Act, 2016.
Background:
The Government is committed to early introduction of GST, one of the biggest reforms, in the country as early as possible. GST Council has decided 1st July as the date of commencement of GST. The Finance Minister in his Budget Speech has mentioned that country-wide outreach efforts will be made to explain the provisions of GST to Trade and Industry.
Tags : GST bills Approval Integration
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