Monthly Archives: October 2015

Draft National Civil Aviation Policy 2015

PIB Release dated 30th October, 2015

Minister of Civil Aviation Shri P. Ashok Gajapathi Raju released the Revised Draft National Civil Aviation Policy (NCAP 2015) in New Delhi today. Speaking on the occasion Shri Raju urged all stakeholders to participate in the process of firming up the policy by giving their valuable suggestions to the Ministry.  He said that the Civil Aviation Policy should be a dynamic one which can keep pace with the ever changing demands of the sector.

Minister of State for Civil Aviation and MoS (I/C) Tourism and Culture Dr Mahesh Sharma was also present  at the function.  Dr. Sharma  underscored  the importance of bringing air travel within reach of the common man and  facilitating regional air connectivity within the country.

Secretary Civil Aviation Shri Rajiv Nayan Choubey gave a presentation highlighting the salient features of the draft policy, which are as follows :

Aim of the Policy

Ø      To provide a conducive environment and a level playing field to various aviation sub-sectors, i.e  Airlines, Airports, Cargo, Maintenance Repairs and Overhaul services, General Aviation, Aerospace manufacturing, Skill Development, etc

Ø      To create an eco-system to enable 30 crore domestic ticketing by 2022 and 50 crore by 2027. Similarly, international ticketing to increase to 20 crore by 2027.

Draft Policy covers:-

  1. Regional Connectivity Scheme (RCS)

Ø      Scheme will come into effect from 1 April 2016

Ø      Airfare about Rs 2500 for a one-hour flight in RCS

Ø      This will be implemented by way of:

ü      Revival of un-served or under-served airstrips.

  • Only 75 out of 476 airstrips/airports have scheduled operations. Revival of these depending on demand.
  • Build ‘no-frills’ airports at a cost of Rs 50 crores.

ü      Viability Gap Funding (VGF) for scheduled commuter airlines.

  • VGF indexed to ATF prices and inflation.
  • VGF to be shared between Centre and State at 80:20.
  • Creation of Regional Connectivity Fund (RCF) for VGF.
  • Levy of 2% on all domestic and international tickets on all routes, other than CAT IIA and RCS.

ü      Concessions by different stakeholders:

  • State Government-

o       Provide free land and multimodal hinterland connectivity.

o       Concessional rates of power, water and other utilities.

o       VAT on ATF  1% or less in RCS airports.

  • Central Govt-

o       Service Tax on tickets under RCS will be exempted.

o       ATF drawn by SCA’s from RCS airports exempt from excise duty.

o       SCA’s to be treated at par with SOPs for customs duty.

ü      Cost-effective security solutions by BCAS and state government.

  1. Scheduled Commuter Airlines (SCA)

 

Ø      Eligibility criteria in terms of paid-up capital to be kept at Rs 2 crore.

Ø      Aircraft with capacity of 100 seats or less.

Ø      No restrictions on number of aircrafts.

Ø      Minimum movements per week to RCS destinations as prescribed.

Ø      SCA can enter into code share with other airlines

Ø      Will be allowed self- handling.

Ø      No airport charges on  SCA  for their operations under RCS. Rationalise in other non- RCS airports

  1. Maintenance, Repair and Overhaul (MRO)

Ø      Develop India as an MRO hub in Asia.

Ø        Service Tax on output services of MRO will be zero-rated.

Ø        Aircraft maintenance tools and tool-kits will be exempt from Customs Duty.

Ø       Tax- free storage period of spare parts imported by MRO’s extended for 3  years.

Ø      To allow import of unserviceable parts by MROs by providing advance exchange.

Ø      Procedures for custom clearance to be simplified.

Ø      Clearance of the parts  by allowing for self -attestation by the MROs.

Ø      Foreign aircraft brought to India for MRO work will be allowed to stay for 6 months. Beyond this, with  DGCA permission .

Ø      Persuade State Govt to make VAT zero-rated

Ø      Airport royalty and additional levies to be rationalised in consultations with Airport Operators.

 

 

  1. Fiscal incentives

Ø      MRO, ground handling, cargo and ATF infrastructure co-located at an airport will also get the benefit of  ‘infrastructure’ sector, with benefits under Section 80-IA of Income Tax Act.

  1. Rule 5/20

 

Ø      The government invites suggestions on three possible policy options:

5/20 Rule may continue as it is,

OR

5/20 Rule will be abolished with immediate effect,

OR

ü        Domestic airlines will need to accumulate 300 DFC before commencing flights to SAARC countries and countries beyond 5000 km radius from New Delhi.

ü      They will need to accumulate 600 DFC before starting flights to the remaining parts of the world.

ü      The DFC earned will be equal to the Available Seat Kilometer (ASKM) deployed by the airline on domestic routes divided by 1 crore.

ü      All domestic airlines will required to earn at least 300 DFC per annum in order to maintain their international flying rights.

ü      Free to re-deploy their excess capacity (above 300) between domestic and foreign operations and also trade them.

  1. Bilateral Traffic Rights

Ø      Liberalise regime of bilateral rights.

Ø      Open sky on reciprocal basis with SAARC countries and countries beyond a 5000 km radius from New Delhi.

Ø      For countries within 5,000 kms where domestic airlines have not fully utilised their quota, additional seats above existing rights would be allotted by bidding for a three year period, proceeds of which will go to RCF.

Ø      Open skies for countries within 5000 kms will be considered with effect from 1 April 2020.

Ø      Increase in FDI in airlines from 49% to above 50% if the government decides to go in for open skies

  1. Code Share

 

Ø      Indian carriers will be free to enter into code-share agreements with foreign carriers for any destination within India on a reciprocal basis.

Ø      International code share between Indian and foreign carriers will be completely liberalised, subject to ASA between India and the country.

Ø      No prior approvals from MoCA will be required. Indian carriers need to simply inform MoCA 30 days prior to starting the code-share flights.

Ø      A review will be carried out after 5 years to consider the requirement of further liberalisation in code-share agreements and to drop the requirement of reciprocity.

  1. Route Dispersal Guidelines (RDG)

 

Ø      Category I will be rationalized by adding more routes based on transparent criteria, i.e., flying distance of more than 700 km, average seat factor of 70% and annual traffic of 5 lakh passengers.

Ø      The percentage of Cat. I traffic to be deployed on Cat. II, IIA and III will remain the same.

Ø      Revised categorization will apply 12 months after date of notification.

Ø      Review of routes under different categories will be done by MoCA once every 5 years.

Ø      Airlines may change routes in Cat II and III with a 30 days prior intimation to MoCA and DGCA.

Ø      Prior permission of MoCA required for withdrawal of existing operations to and within N.E region, Islands and Ladakh.

 

  1. Airports

Ø     MoCA will continue to encourage development of airports by the State Government or the private sector or in PPP mode.

Ø     MoCA will endeavour to provide regulatory certainty.

Ø     The capital expenditure of all future greenfield and brownfield airport projects promoted by AAI in PPP mode will be monitored closely by AAI.

Ø     Tariff at all future airports will be calculated on a ‘hybrid till’ basis.

Ø     MoCA will explore ways to unlock the potential land use by liberalising the end-use restrictions for existing (excluding PPP) and future airports of AAI and future airport projects under PPP.

 

  1. Airport Authority of India

Ø     AAI will continue to modernize airports and upgrade quality of services.

Ø     AAI will maintain an ASQ rating of 4.5 or more across all airports with throughput above 1.5 mppa and ASQ rating of 4.0 or more for the rest.

Ø     AAI may be suitably compensated in case a new greenfield airport is approved in future within a 150 km radius of an existing operational AAI airport (not applicable to civil enclaves). Alternatively, give option to have the right of first refusal or equity participation upto 49% in the new airport at its discretion.

Ø     AAI will continue to provide necessary financial support and facilitate technological upgradation of ANS to keep pace with the global best practices.

  1. Ground handling

 

Ø      There will be at least three Ground Handling Agencies (GHA) including Air India’s subsidiary/JV at an airport.

Ø      Domestic airlines and charter operators will be free to carry out self-handling themselves or through their subsidiaries or to outsource the same to other airlines or to a GHA.

Ø      Ground handling staff will have to be on the rolls of the airlines or their subsidiaries or the GHA. Domestic airlines (including subsidiaries) and GHAs will be permitted to take contract employees on their rolls.  Such employment contracts will be for a period of at least one year.

  1. Aviation Security

 

Ø      MoCA will develop ‘service delivery modules’ for aviation security, Immigration, Customs, quarantine officers etc in consultations with respective Ministries/Departments.

Ø      The Government will encourage use of private security agencies at airports for non- core security functions which will be decided in consultation with MHA.

Ø      Private security agencies will comprise retired personnel from military and para-military forces. BCAS will provide scope of work and norms.

Ø      Security auditors of  BCAS will carry out regular and surprise audits with the power to penalize and blacklist the errant agencies

  1. Helicopters

Ø     Government will support growth of helicopters for remote area connectivity, intra-city movement, tourism, law enforcement, disaster relief, medical evacuation, etc.

Ø     Separate regulations for helicopters will be notified by DGCA by 1 April 2016, after due stakeholder consultation.

Ø     The government will facilitate the development of four heli-hubs initially.

Ø     Helicopters will be free to fly from point to point without prior ATC clearance in airspace below 5000 feet and outside ATC control areas and areas other than prohibited and restricted ones, after filing the flight plan with the nearest ATC office.

  1. Cargo

Ø      The Air Cargo Logistics Promotion Board (ACLPB) will submit a detailed action plan with the objective of reducing dwell time of air cargo from ‘aircraft to truck’ which should also ensure shift to paperless processing.

Ø      ACLPB will develop ‘service delivery modules’ for all elements of air cargo value chain.

Ø      Advanced Cargo Information system to be implemented by 1 April 2016.

Ø      ACLPB to propose specific action steps to promote transhipment.

Ø      ACLPB will work with AERA and AAI to ensure are competitive vis-à-vis competing aviation hubs.

Ø      ACLPB will lay down norms for time slots and parking for freighter aircraft.

Ø      Optimum use of 24×7 Customs operations to spread out cargo handling.

Ø      AAI to provide space on10 year lease for express cargo and freighters.

  1. Aeronautical ‘Make in India’

 

Ø      MoCA will be nodal agency for developing commercial aero-related manufacturing and its eco-system in India.

Ø      MoCA and MoD will work together to ensure that commercial aero-manufacturing is covered under defence offsets requirements.

Ø       Area where aero-manufacturing takes place will be notified as SEZ.

 

  1. Other policy reforms

 

  • Greater de-regulation, transparency and e-governance
  • Aviation education and skill building
  • Promotion of sustainable aviation practices

Streamlining Charter Operations

The Ministers and the Secretary also addressed the media on the occasion and answered their  queries. The Draft Policy has been uploaded  on the website of the Ministry and details are  available athttp://www.civilaviation.gov.in/.  The Ministry has sought feedback from stakeholders, which can be sent to the following email-id:  feedback-avpolicy@gov.in

Leave a comment

Filed under Uncategorized

Yoga exempted from service tax

The Ministry of Finance (Department of Revenue) has vide its notification no. 20/2015 dated 21st October, 2015 exempted yoga from the purview of service tax. Basically yoga has been included as a charitable activity which thenceforth becomes exempted from service tax.

Also exempted are

business facilitator or a business correspondent to a banking company with respect to a Basic Savings Bank Deposit Account covered by Pradhan Mantri Jan Dhan Yojana in the banking company’s rural area branch, by way of account opening, cash deposits, cash withdrawals,obtaining e-life certificate, Aadhar seeding;

 (ga) any person as an intermediary to a business facilitator or a business correspondent with respect to services mentioned in clause (g);

 (gb) business facilitator or a business correspondent to an insurance company in a rural area; 

http://www.servicetax.gov.in/htdocs-servicetax/st-notifications/st-notifications-2015/st20-2015

Leave a comment

Filed under Uncategorized

Annual return on foreign assets & liabilities – reporting by LLPs

RBI has vide its circular no. 22 dated 21st October, 2015 mandated that LLPs (Limited Liability Partnerships) which have received FDI or invested abroad (ODI) are also required to report annually in the FLA return i.e. Foreign Liabilities and Assets return by 15th July every year. However since they do not have a Corporate Identification Number (CIN) they have to mention  ‘A99999AA9999LLP999999’ against CIN in the said return. The operative part of the said circular is reproduced hereunder:

In order to capture the statistics relating to Foreign Direct Investments (FDI), both inward and outward, by Limited Liabilities Partnerships (LLPs) in India, it has been decided that henceforth, all LLPs that have received FDI and/or made FDI abroad (i.e. overseas investment) in the previous year(s) as well as in the current year, shall submit the FLA return to the Reserve Bank of India by July 15 every year, in the format as prescribed in the A.P (DIR Series) Circular No. 145 dated June 18, 2014. Since, LLPs do not have21-Digit CIN (Corporate Identity Number), they are advised to enter ‘A99999AA9999LLP999999’ against CIN in the FLA Return.

Leave a comment

Filed under Uncategorized

Subscription to National Pension System by NRIs

RBI has vide its circular no. 24/2015 dated 29th October, 2015 allowed Non Resident Indians to invest in the National Pension System. The salient features of the said circular are as follows

With a view to enabling NRIs’ access to old age income security, it has now been decided, in consultation with the Government of India, to enable National Pension System (NPS) as an investment option for NRIs under FEMA, 1999. Accordingly, NRIs may subscribe to the NPS governed and administered by the Pension Fund Regulatory and Development Authority (PFRDA), provided such subscriptions are made through normal banking channels and the person is eligible to invest as per the provisions of the PFRDA Act.

The subscription amounts shall be paid by the NRIs either by inward remittance through normal banking channels or out of funds held in their NRE/FCNR/NRO account. There shall be no restriction on repatriation of the annuity/ accumulated savings.

Leave a comment

Filed under Uncategorized

Guidelines for Trading of Access Spectrum by Access Service Providers

Govt. press release dated 13/10/2015

The National Telecom Policy envisage to move at the earliest towards liberalisation of spectrum to enable use of spectrum in any band to provide any service in any technology as well as to permit spectrum pooling, sharing and later, trading to enable optimal utilisation of spectrum through appropriate regulatory framework.

The spectrum trading leads to greater competition provides incentives for innovation, better/new services being available to consumers at cheaper tariffs, better choice to consumer, etc. This also facilitates ease of doing business in India by allowing free play in the commercial decisions and leads to optimisation of resources apart from improving the spectral efficiency and quality of service.

After considering the recommendations of TRAI on spectrum trading, the Government has now decided to allow trading of access spectrum as per guidelines given below:

 

(1).         Spectrum trading shall be allowed only between two access service providers, holding Cellular Mobile Telephone Service (CMTS) License, Unified Access Service License (UASL), Unified License (Access Services)(UL(AS)) and Unified License (UL) with authorization of Access Service in a licensed service area.

(2).         All access spectrum bands earmarked for Access Services by the Licensor will be treated as tradable spectrum bands.

(3).         The Access Service Provider who is transferring the right to use the spectrum is hereinafter referred as “Seller” while the Access Service Provider who is acquiring the right to use spectrum is hereinafter referred as “Buyer”.

(4).         Only outright transfer of right to use the spectrum from the seller to the buyer shall be permitted. Leasing of spectrum is not permitted.

(5).         Spectrum Trading shall be permitted only on a pan-LSA (Licensed Service Area) basis. In case the spectrum assigned to the seller is restricted to part of the LSA by the Licensor, then, after trading, the rights and obligations of the seller for the remaining part of the LSA with regard to assignment of that spectrum shall also stand transferred to the buyer. Further, relevant provisions of NIA with respect to spectrum assignment in part of the LSA, which were applicable to seller before the spectrum trade, will apply to buyer subsequent to the spectrum trade.

(6).         Spectrum trading shall be permitted only in the following block sizes (band wise):

Spectrum band Block Size
800 MHz 2×1.25 MHz
900 MHz 2×200 KHz
1800 MHz 2×200 KHz
2100 MHz 2×5 MHz
2300 MHz 20 MHz in TDD
2500 MHz 20 MHz in TDD and 2×10 in FDD

(7).         Spectrum trading will not alter the original validity period of spectrum assignment as applicable to the traded block of spectrum.

(8).         Only that spectrum, as specified in para 6 above, is permissible to be traded which has either been assigned through an auction in the year 2010 or afterwards, or on which the Telecom Service Provider (TSP) has already paid the prescribed market price as per para 24 below. In such a case, entire spectrum would be tradable. In respect of spectrum in 800 MHz acquired in the auction held in March 2013, trading of spectrum shall be permitted only if the differential of the latest auction price and the March 2013 auction price on pro-rata basis on the balance period of right to use the spectrum is paid

(9).         Both the licensees trading the spectrum shall jointly give a prior intimation for trading the right to use the spectrum at least 45 days before the proposed effective date of the trading as per prescribed format to Wireless Adviser, Wireless Planning and Coordination Wing, Department of Telecommunications, 6thfloor, Sanchar Bhawan, 20, Ashok Road, New Delhi – 110001.

(10).       Both the licensees shall also give an undertaking that they are in compliance with all the terms and conditions of the guidelines for spectrum trading and the license conditions and will agree that in the event, it is established at any stage in future that either of the licensee was not in conformance with the terms and conditions of the guidelines for spectrum trading or/and of the license at the time of giving intimation for trading of right to use the spectrum, the Government will have the right to take appropriate action which inter-alia may include annulment of trading arrangement.

(11).     The seller shall clear all its dues prior to concluding any agreement for spectrum trading. Thereafter, any dues recoverable up to the effective date of trade shall be the liability of the buyer. The Government shall, at its discretion, be entitled to recover the amount, if any, found recoverable subsequent to the effective date of the trade, which was not known to the parties at the time of the effective date of trade, from the buyer or seller, jointly or severally. The demands, if any, relating to licenses of seller, stayed by the Court of Law, shall be subject to outcome of decision of such litigation.

(12).       Where an issue, pertaining to the spectrum proposed to be transferred is pending adjudication before any court of law, the seller shall ensure that its rights and liabilities are transferred to the buyer as per the procedure prescribed under the law and any such transfer of spectrum will be permitted only after the interest of the Licensor has been secured.

(13).       The relevant provisions in the NIA for auction of spectrum with regard to liberalization of existing spectrum holding in 800 MHz/1800 MHz band shall apply. In respect of other bands, where spectrum has not been acquired through auction, terms and conditions of liberalisation shall be as decided by the Government from time to time.

(14).       The terms and conditions attached to the spectrum under the provisions specified in the relevant Notice Inviting Application (NIA) document or otherwise shall continue to apply after the transfer of spectrum unless specifically mentioned in the guidelines.

(15).       Buyer will be allowed to use the spectrum acquired through trading to deploy any technology by combining it with their existing spectrum holding in the same band after converting their entire existing spectrum holding into liberalized spectrum in that band as per the prevalent terms and conditions.

(16).       The buyer should be in compliance with the prescribed spectrum caps declared from time to time. It is clarified that the spectrum acquired through trading shall be counted towards the spectrum cap by adding to the spectrum holding of the buyer. This will result in increase of spectrum holding of the buyer and reduction in spectrum holding of the seller.

(17).       A TSP will be allowed to sell the spectrum through trading only after two years from the date of its acquisition through auction or spectrum trading or administratively assigned spectrum converted to tradable spectrum.

(18).       In case of administratively assigned spectrum converted to tradable spectrum after paying the prescribed market price, period of two years will be counted from the effective date of assignment of administrative spectrum.

(19).       If buyer is acquiring the entire spectrum holding of the seller in a spectrum band, then it shall fulfil the associated roll-out obligations within the balance time period for compliance subject to a minimum period of two years.

(20).       If the buyer is acquiring a part of the spectrum holding of the seller in a spectrum band, then both buyer and seller will have spectrum holding in that band after the trade. In such a scenario, both will be responsible for the roll-out obligations. There is no change in the roll-out obligations prescribed for seller, even if it is holding a lesser quantity of spectrum in that band post-trade. In addition, buyer will also be required to fulfil entire roll-out obligations. Since there is no change in the roll-out obligations of seller and there will be additional roll-out obligations for buyer, the buyer shall be given entire time duration to fulfil these roll-out obligations.

(21).     If the buyer has met some or all of its roll-out obligations through its prior spectrum holding in that band, it shall be taken into account and the buyer will not be required to repeat the required testing for roll-out obligations it has already met.

(22).     The seller should clear its Spectrum Usage Charges (SUC) and its instalment of payment due (in case seller had acquired the spectrum through auction and opted for deferred payment) till the effective date of trade and thereafter, the buyer shall clear all these dues.

(23).     If any TSP sells only a part of its spectrum holding in a band, both, buyer as well as seller, will be required to pay the remaining instalments of payment (in case seller had acquired the spectrum through auction and opted for deferred payment), prorated for the quantum of spectrum held by each of them subsequent to the spectrum trade.

(24).     A non-refundable transfer fee of one percent (1%) of the transaction amount of aforesaid trade or one percent (1%) of the prescribed market price, whichever is higher shall be imposed on all spectrum trade transactions, to cover the administrative charges incurred by Government in servicing the trade. The transfer fee shall be paid by the buyer to the Government. Transaction amount refers to the amount payable by the buyer to the seller to purchase the rights to use the spectrum block(s). It will be decided exclusively by the buyer and the seller. The market prices shall be equal to the auction determined amount prorated for the balance validity period of spectrum assignment. In case more than one set of market determined prices are available, the latest market determined price available at the time when the TSP wants to trade its spectrum holding, would be applicable. If the auction determined prices are more than one year old, the prevailing market price shall be applied by indexing the last auction price at the rate of SBI PLR.

(25).     The payment is to be made by draft in favour of Pay & Account Officer (HQ), DOT payable at New Delhi.

(26).     The amount received from trading shall be part of Adjusted Gross Revenue (AGR) for the purpose of levy of License fee and Spectrum Usage Charges (SUC).

(27).     Existing rates as prescribed by the Government from time to time for Spectrum Usage Charge (SUC) shall continue to apply on spectrum held by the buyer and seller. The spectrum held by buyer shall include the spectrum acquired through trading. Spectrum acquired through spectrum trading shall be treated akin to spectrum acquired through auction.

(28).     Frequency swapping/reconfiguration from within the assignments made to the licensees shall not be treated as trading of spectrum. The conditions in the NIA shall govern frequency swapping/reconfiguration.

(29).     A licensee shall not be allowed to trade in spectrum if it has been established that the licensee had breached the terms and conditions of the license and the Licensor has ordered for revocation/termination of its license.

(30).     Licensor reserves the right to modify the guidelines from time to time as it may deem fit.

Leave a comment

Filed under Uncategorized

Refund under MahaVAT only through NEFT

The Commissioner of Sales Tax, Mumbai has issued a circular dated 30/09/2015 mandating that all refunds under the MVAT Rules, 2005 will be issued only under NEFT basis with effect from 1st October, 2015.

Rule 45 of MVAT Rules 2005 has been amended by insertion of Rule 45A which provides for remittance of refund through electronic system. In order to avail of this facility the eligible registered dealers under MVAT Act, 2002 will have to comply with some formalities such as

(a) The dealer needs to have his bank account in the bank which facilitates NEFT;

(b) information about the NEFT enabled bank account such as account number, branch details, IFSC code are captured in the registration record of the dealer.

(c ) dealers to submit an amendment application to the respective Branch/ office alongwith annexure A duly attested by bank manager with cancelled cheque,

(d) the annuexure a will remain on record until the dealer submits a fresh annexure A with revised bank details

With effect from 1st October, 2015, MVAT refunds will be paid through NEFT mode only.

Refund orders in respect of dealers whose registration certificate is cancelled, who is a non TIN holder and where orders are not passed on MAHAVIKAS shall be continue to dealt with on manual basis only.

The circular is available on mahavat site.

Leave a comment

Filed under Uncategorized

Quality of Service under Digital Cable TV systems

TRAI has issued an advisory dated 1/10/2015 to the MSOs under the Quality Service Regulation for DAS (Digital Addressable Cable TV Systems) that every MSO or its linked LCO, as the case maybe, shall within 24 hours of the receipt of complaint pertaining to malfunctioning of a set top box from a subscriber ensure that the set top box is repaired or replaced with a new Set Top Box if it is covered within the warranty or it has been acquired by the subscriber on hire purchase scheme or on rental basis. These standards are covered in the “STandards of Quality of Service (Digital Addressable Cable TV Systems), REgulations, 2012. TRAI suggests that for adhering to the 24 hours deadline, spare set top boxes may be provided by the MSOs to the LCOs in their jurisdiction.

MCOs are also requested to lay down proper communication procedures to register complaints through LCOs and get them redressed on priority basis.

TRAI circular is available at the TRAI site.

Leave a comment

Filed under Uncategorized

Regularisation of assets held abroad pursuant to Black Money Act

RBI has vide its notification dated 30th September, 2015 laid down the modalities for regularisation of assets held abroad and for which declaration has been to the competent authority pursuant to the Black Money Act. The salient features of its notificaton is as below:

a) No proceedings shall lie under the Foreign Exchange Management Act, 1999 (FEMA) against the declarant with respect to an asset held abroad for which taxes and penalties under the provisions of Black Money Act have been paid.

b) No permission under FEMA will be required to dispose of the asset so declared and bring back the proceeds to India through banking channels within 180 days from the date of declaration.

c) In case the declarant wishes to hold the asset so declared, she/ he may apply to the Reserve Bank of India within 180 days from the date of declaration if such permission is necessary as on date of application. Such applications will be dealt by the Reserve Bank of India as per extant regulations. In case such permission is not granted, the asset will have to be disposed of within 180 days from the date of receipt of the communication from the Reserve Bank conveying refusal of permission or within such extended period as may be permitted by the Reserve Bank and proceeds brought back to India immediately through the banking channel.

Leave a comment

Filed under Uncategorized