RBI increases limit for resident individuals under Liberalised Remittance Scheme (LRS) from USD 125,000 to USD 250,000

RBI increases limit for resident individuals under Liberalised Remittance Scheme (LRS) from USD 125,000 to USD 250,000

In reference to the A.P.(DIR Series) Circular No. 138 dated June 3, 2014 regarding the Liberalised Remittance Scheme (LRS) for resident individuals and the existing guidelines issued under the Foreign Exchange Management (Current Account Transactions) Rules, 2000. RBI has decided to make the following changes for further liberalization and rationalization on the existing guidelines.

Limit and Facilities under LRS–AD banks may now allow remittances by a resident individual up to USD 250,000 per financial year for any permitted current or capital account transaction or a combination of both. If an individual has already remitted any amount under the LRS, then the applicable limit for such an individual would be reduced from the present limit of USD 250,000 for the financial year by the amount already remitted. The permissible capital account transactions by an individual under LRS are:

2013. i) opening of foreign currency account abroad with a bank;
      ii) purchase of property abroad;
      iii) making investments abroad;
      iv) setting up Wholly owned subsidiaries and Joint Ventures abroad;
      v) extending loans including loans in Indian Rupees to Non-resident Indians (NRIs) who are relatives as defined in Companies Act, 2013.

Remittance Procedure

Requirements to be complied with by the remitter— The resident individual seeking to make the remittances should furnish an application cum declaration in the format to the AD/ full fledged money changer (FFMC) concerned regarding the purpose of the remittances and declaration to the effect that the funds belong to the remitter and will not be used for the prohibited purposes. Resident individuals can also purchase foreign exchange from a full fledged money changer (FFMC) for private/business visits. Foreign exchange thus purchased from an FFMC should also be reckoned within the overall LRS limit USD 250,000 and declared accordingly in the application-cum-declaration form submitted to the AD bank.

Requirements to be complied with by the Authorised Persons– While allowing the facility to resident individuals, Authorised Persons, including AD Category II and FFMCs, are required to ensure that the “Know Your Customer” guidelines and the Anti-Money Laundering Rules in force have been complied with while allowing the transactions.

Requirements to be complied with by the Authorised Dealers– It is clarified that banks should not extend any kind of funded and non-funded facilities to resident individuals to facilitate capital account remittances under the Scheme. The applicants should have maintained the bank account with the bank for a minimum period of one year prior to the remittance for capital account transactions.

The Real Estate (Regulation and Development) Bill, 2013

The Real Estate (Regulation and Development) Bill, 2013

The Union Cabinet chaired by the Hon’ble Prime Minister, Shri Narendra Modi, has given its approval to amendments to the Real Estate (Regulation and Development) Bill, 2013. The Real Estate (Regulation and Development) Bill is a pioneering initiative to protect the interest of consumers, promote fair play in real estate transactions and to ensure timely execution of projects. The Bill provides for a uniform regulatory environment, help speedy adjudication of disputes and ensure orderly growth of the real estate sector.

The recommendations of the Standing Committee of Parliament on Urban Development and suggestions of various stakeholders have also been included in the amended bill. The various measures taken under the bill are expected to boost domestic and foreign investment in the sector and help achieve the objective of the Government of India to provide ‘Housing for All by 2022’, through enhanced private participation.

The Bill is expected to ensure greater accountability towards consumers, significantly reduce frauds and delays, promote professionalism and standardization. The Bill also aims at restoring confidence of the general public in the real estate sector by instituting transparency and accountability in real estate and housing transactions. Further, it also ensures mandatory disclosure by promoters to customers through registration of real estate projects as well as real estate agents with the Real Estate Regulatory Authority.

The salient features of the Bill are as under :

The Real Estate (Regulation and Development) Bill, 2013

Webinar on Doing Business in Germany & India : Basic Laws

Webinar on Doing Business in Germany & India : Basic Laws

Free Webinar on Doing Business in Germany & India: Basic Laws.

Thursday, May 28, 2015 11:10 AM – 12:15 PM.

The topics to be recovered the labour relations system, the consequences of terminating employment contracts, employment litigation and seconded employees. Also, the presenters will point out specific particularities of the employment laws in their various countries.

1. How to open office and Regulatory compliance.
2. How to hire a local attorney Key insights and information on European markets and sectors.
3. How we can help you take advantage of the new opportunities available Trade Finance.

Make in India Policy – Part I

Make in India Policy – Part I

Shri Narendra Modi, Prime Minister of India

Launching his government’s ambitious project to make India a manufacturing hub, Prime Minister Narendra Modi promised effective and easy governance to help achieve high growth and creation of jobs. The ambitious scheme, that also puts in place the logistics and systems to address in a timely manner queries of potential investors, was unveiled along with a logo, a portal and brochures on 25 identified growth sectors before Who’s Who of the corporate world from India and abroad at the Vigyan Bhavan conference complex.

A major new national program designed to facilitate investment, foster innovation, enhance skill development, protect intellectual property and build the best-in-class manufacturing infrastructure are the primary reasons to take an interest in this program which is designed to transform India into a global manufacturing hub. New smart cities and industrial clusters, are being developed in identified industrial corridors having connectivity, new youth-focused programs and institutions dedicated to developing specialized skills.

With the easing of investment caps and controls, India’s high- value industrial sectors – defense, construction and railways – are now open to global participation 100% FDI allowed in Defense sector for modern and state of the art technology on case to case basis.100% FDI under automatic route permitted in construction, operation and maintenance in some specified Rail Infrastructure projects.

Most importantly, the Make in India program represents an attitudinal shift in how India relates to investors, not as a permit-issuing authority, but as a true business partner. Dedicated teams that will be guiding and assisting first-time investors, from their time of arrival. Focused targeting of companies across sectors.

Investment allowance (additional depreciation) at the rate of 15 percent to manufacturing companies that invest more than INR 1 billion in plant and machinery available till to 31.3.2015. Each state government has its own incentive policy, which offers various types of incentives based on the amount of investments, project location, employment generation, etc. The incentives differ from state to state and are generally laid down in each state’s industrial policy. The broad categories of state incentives include: stamp duty exemption for land acquisition, refund or exemption of value added tax, exemption from payment of electricity duty etc.

The Indian government has also taken several initiatives to create a conducive environment for the protection of intellectual property rights of innovators and creators by bringing about changes at legislative and policy level. In addition, specific focus has been placed on improved service delivery by upgrading infrastructure, building capacity and using state-of-the-art technology in the functioning of intellectual property offices in the country. This measure has resulted in sweeping changes in IP administration within the country.

There is now efficient processing of IP applications by inducting additional manpower, augment IT facilities and automation in Intellectual Property Offices. The adoption of best practices in IP processing. The strengthening of public delivery system of IP services. There now are highest levels of transparency and user-friendliness. The IPR framework in India is stable and well established from a legal, judicial and administrative point of view and is fully compliant with the Agreement on Trade-Related Aspects of Intellectual Property Rights. India is committed to wide range of international treaties and conventions relating to intellectual property rights. Wide range of awareness programs are being conducted by the Government. During the last few years, Indian IP offices have undergone major improvements in terms of upgrading of the IP legislation, infrastructure facilities, human resources, the processing of IP applications, computerization, databases, quality services to stakeholders, transparency in functioning and free access to IP-data through a dynamic website. State of the art, integrated and IT- enabled office buildings have been created during the last few years in New Delhi, Kolkata, Chennai and Mumbai and Ahmedabad, housing central wings for Patents and Designs and Trademarks and Geographical Indications.

Made in India Policy Part II

Make in India Policy – Part II

The need to raise the global competitiveness of the Indian manufacturing sector is imperative for the country’s long term-growth. The National Manufacturing Policy is by far the most comprehensive and significant policy initiative taken by the Government. The policy is the first of its kind for the manufacturing sector as it addresses areas of regulation, infrastructure, skill development, technology, availability of finance, exit mechanism and other pertinent factors related to the growth of the sector. The aim is to create 100 million additional jobs by 2022 in manufacturing sector. Creation of appropriate skill sets among rural migrants and the urban poor for inclusive growth. There is an increase in domestic value addition and technological depth in manufacturing. There is a need to enhance the global competitiveness of the Indian manufacturing sector. There exists a need to ensure sustainable growth, particularly with regard to environment.

The focus is on promoting employment-intensive industries like textiles and garments, leather and footwear, gems and jewellery and food processing industries. Capital goods industries like machine tools, heavy electrical equipment, heavy transport, earthmoving & mining equipment. Industries with strategic significance like aerospace, shipping, IT hardware & electronics, telecommunication equipment, defense equipment and solar energy are being focused on. Industries where India enjoys a competitive advantage such as automobiles, pharmaceuticals & medical equipment are further being improved.

The National Investment and Manufacturing Zones are being conceived as giant industrial greenfield townships to promote world-class manufacturing activities. The central government will be responsible for bearing the cost of master planning, improving/providing external physical infrastructure linkages including rail, road, ports, airports and telecom, providing institutional infrastructure for productivity, skill development and the promotion of domestic and global investments.

State governments will be responsible for water requirement, power connectivity, physical infrastructure, utility linkages, environmental impact studies and bearing the cost of resettlement and rehabilitation packages for the owners of acquired land. The state government will also play a role in its acquisition if necessary. In government, purchase preferences will be given to units in the national investment and manufacturing zones. Central & State governments to provide exemptions from rules and regulations related to labour, environment etc. subject to the fulfilment of certain conditions.

The Make in India policy intends to leverage the existing incentives/schemes of government. A technology acquisition and development fund has been proposed for the acquisition of appropriate technologies, the creation of a patent pool and the development of domestic manufacturing of equipment used for controlling pollution and reducing energy consumption. There are incentives for the production of equipment/machines/devices for controlling pollution, reducing energy consumption and water conservation. The policy will also consider use of public procurement with stipulation of local value addition in specified sectors. These include areas of critical technologies such as solar energy equipment, electronic hardware, fuel efficient transport equipment, IT based security systems, power, roads & highways, railways, aviation and ports. In conclusion we can truly say there’s never been a better time to make in India.

India Israel Trade

India Israel Trade

Israel has extraordinary achievements in agriculture and agro-technology, irrigation, solar energy, and in many hi-tech industries and start-ups. Based on intensive R&D, Israel today is not only the land of milk and honey but also the land of hi-tech, including software, communications, biotechnology, pharmaceuticals, nanotechnology, electronics, software, medical equipment, printing, and computerized graphics. The major focus of the civilian trade has been in the areas of diamonds, agriculture, pharmaceuticals, chemicals and the IT sector. Trade and cooperation between the countries now centers primarily on security-related deals and aid in areas such as agriculture and water desalination. Israel outsources significant amount of legal work to India. Being a destination of choice for Legal Process Outsourcing, Indian legal professionals have now specialized in Israeli laws and are equipped to provide quality services. There is great scope of growth in the legal service sector.

Israel’s core strength in R&D involve in areas like life sciences, pharmaceuticals, biotechnology, software, telecommunication and semiconductors. Israel’s electronics industry excels in developing systems and solutions for micro-electronics, semiconductors, communications, Internet applications, electronic equipments, medical devices and diagnostic systems, smart-cards etc. There are ample opportunities of cooperation between India and Israel in the IT sector. India is a fast-growing economy with a strong consumer base and manufacturing capabilities. Israel has intrinsic strengths in product development and technological innovations. The promising sectors in India are renewable energy, telecom, food production, automobiles among others. Israeli companies have invested in India in projects involving agriculture and water technologies. Israeli companies are also setting up Research and Development (R&D) centers or production units in India. Major exports from India to Israel include precious stones and metals, chemical products, textile and textile articles, plants and vegetable products, mineral products, rubber and plastic products, base metals and machinery. Major exports from Israel to India include precious stones and metals, chemical and mineral products, base metals, machinery, and transport equipment.

Israel has offered India all help with top-notch military technologies like the Iron Dome interceptor in tune with PM Narendra Modi’s ‘Make in India’ policy, which includes indigenous defense production as a key thrust area. The ‘Make in India’ initiative has a lot in store for the Indian as well as foreign investors and manufacturers alike with the key focus on public-private partnerships and harnessing the potential of “Democracy, Demography and Demand.” While India Inc is set to gain from the campaign, the government has also stressed on inviting two kinds of FDIs- First Develop India and Foreign Direct Investment, where for India, FDI is a responsibility, it means to First Develop in India and for global investors, FDI is an opportunity in the form of Foreign Direct Investment. Being a facilitation window for investors wanting to do business in the country, Make in India campaign will act as a facilitator to foreign investors, guiding them through clearances and advising them on joint venture partners as well.

Mr. Kaviraj Singh, Secretary General, INBA

Mr. Kaviraj Singh, Secretary General, INBA share his views on INBA, 65th National Law Day conference.