India’s civil aviation sector has undergone significant transformation in recent years, fueled by liberalization measures and strategic policy interventions. India’s air travel industry has changed a lot lately because of new rules and government decisions. One big part of this change is how foreign companies can invest in Indian airlines. This policy is really important for how the industry grows.
Ministry of Corporate Affairs have unlocked a global opportunity for Unlisted Public Company and Listed public Company to get their equity shares listed on international stock exchange in permissible foreign jurisdiction.
neficial owners. Every Company is required to maintain a register of Significant Beneficial owners and such information is required to be changed as and when applicable. In line with Provision of Companies Act, MCA has notified Limited Liability Partnership (Significant Beneficial Owners) Rules, 2023 vide Notification No. G.S.R.832(E) dated 9th November, 2023.
The Assessee is a company based out in Austria. The Assessee is having a Subsidiary Company in India. The Appellant has received software-related services income during the year. Apart, The Company also received reimbursement of expenses from Indian Subsidiary. However, the Company claimed the same as exempted Income as expenses are recovered on cost to cost basis without any markup. Further, the Company also supplied goods to Indian Entities on a principal to principal basis. The Ld. AO Charged Income tax on reimbursement of expense claiming that such income pertains to technical income provided to Indian subsidiary. Further, AO assumed that entire sales in India are made through Indian Subsidiaries. The Asseesee has a fixed place of business in India in the form of Indian Subsidiary. The ‘core business’ of the assessee is conducted through Mosdofer India Private Limited. Therefore, profit attributable to such PE is taxable in India.
Reserve Bank of India (RBI) has issued a detailed circular on the regulation of Payment Aggregator-Cross Border (PA-CB) vide RBI/2023-24/80 CO.DPSS.POLC.No.S-786/02-14-008/ 2023-24 dated 31st October, 2023. Processing of payment or receipts transactions in cross-border transactions is not something an Individual entity can do itself. All these facilities are provided by Payment Aggregator through Payment gateways.
Foreign Direct Investment means any investment made by a person resident outside in Indian Companies through equity instruments or in LLPs through capital contribution. When India is in the direction of becoming a developed country, interest of persons resident outside India is increasing substantially in Indian Entities. As the foreign funding is increasing, the regulation by the Central Government is also increasing on FDIs.
Inter-country transactions have increased drastically and entities across the countries are dealing with each other. In such a case, every country has its own method of identification of any entity such as India having PAN and CIN. However, when it comes to global transactions, the international regulatory bodies are facing the issue of identification of entities in absence of any unique identification number.
In a recent amendment, the Income Tax Department has exempted non-resident Individuals and foreign companies from submitting PAN for opening of Bank Account at GIFT International Financial Service Centre. Instead, Foreign companies and non-resident Individuals are required to furnish Form 60.
Form 10F is required to be filed by non-residents for claiming benefit of Double Taxable Avoidance Agreement (DTAA) so that they can get income without deduction of TDS in India. Recently, Non-residents were facing a major dilemma of obtaining PAN for filing of Form 10F on Income Tax portal.
Income Tax Act provides various situations where a foreign company is mandatorily required to obtain PAN. However, there are various situations where PAN is not required as per Law, however, same is required due to practical compliances such as PAN for filing Form 10F for claiming benefit of Form 10F.
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