Corporate Law Alert Vol.8 – August 31, 2010
Regulatory Framework for Core Investment Companies (“CICs”)
The Reserve Bank of India (“RBI”) vide A.P. (DIR Series) Circular No.3 dated July 22, 2010 has advised the AD Category-I banks not to insist on the surrender of the proportionate export incentives to an exporter who requests for a “write-off” of exports made by the exporter, provided the following conditions are satisfied
The Reserve Bank of India (“RBI”) vide A.P. (DIR Series) Circular No.57 dated June 29, 2010 has extended the period for realisation and repatriation to India of the amount representing the full export value of goods or software exported, from six months to twelve months from the date of export until March 31, 2011
The Authority for Advance Rulings (Income Tax) (the ‘AAR’) in a matter brought before it vide A.A.R. NO. 805-10/2009 held that, it is within the legitimate freedom of an entity to arrange its affairs so that the tax chargeable under the Income Tax Act, 1961 (the ‘IT Act’) is less than what it would be, had the entity not arranged its affairs in the manner it has.
The Department of Industrial Policy & Promotion, Ministry of Commerce & Industry has issued a Corrigendum on October 31, 2011 bearing reference number F.No. 5(19)/2011-FC-I deleting clause 22.214.171.124 of Circular 2 of 2011 (FDI Circular).