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February 19th, 2025

5 min read

Clarification regarding advertising services provided to foreign clients.

Indian advertising companies/agencies have requested clarification on the tax treatment of services provided to foreign clients, as certain authorities have been treating the place of supply for such services as within India, thereby denying export benefits. This circular addresses these concerns and provides uniform guidelines.

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Taxcompliance

TaxCompliance

5 min read

Clarification on the Place of Supply of Data Hosting Services Provided by Service Providers Located in India to Cloud Computing Service Providers Located Outside India.

The Ministry of Finance has issued this circular to clarify the place of supply of data hosting services provided by Indian service providers to cloud computing service providers located outside India. This clarification addresses issues raised by the trade and industry regarding whether such services qualify as exports under the Integrated Goods and Services Tax (IGST) Act, 2017.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

Clarification on the Availability of Input Tax Credit for Demo Vehicles.

This circular provides clarification regarding the availability of input tax credit (ITC) for demo vehicles maintained by authorized motor vehicle dealers. These vehicles are essential for trial runs and feature demonstrations to potential buyers, as per dealership norms. Purchased from manufacturers with tax invoices, these demo vehicles are typically recorded as capital assets in the dealer’s books and may be sold after a specific period.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

The Liberalised Remittance Scheme: How Liberally Can Indians Send Money Abroad?

When Mrs. Sharma wanted to send money to her daughter studying in the US, she got a rude shock when her Bank informed her that she had exhausted the limit for the year. What really is the limit and how can Resident Indians undertake international transactions? Let’s find out.

The Liberalised Remittance Scheme (LRS) introduced by the Reserve Bank of India (RBI) is a pivotal framework designed to facilitate resident individuals in India in remitting funds abroad.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

Fema Odi Latest

The Overseas Investment (OI) Rules, 2022, provide comprehensive guidelines for both Overseas Direct Investment (ODI) and Overseas Portfolio Investment (OPI). These rules are further supported by regulations and directions issued by the RBI, ensuring the proper management of foreign exchange in alignment with India's economic interests.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

Why Are Indian Exporters in the Midst of Getting Notices From Their Banks?

If you are an Indian exporter and you have been flooded with notices from your banks on outstanding Inward Remittance Memorandums (IRMs) against exports that you have made some time back, you are not alone. Most authorised dealer banks have been asked by the Reserve Bank of India to monitor outstanding IRMs and clear them off, failing which exporters could even be put on the Exporters’ Caution List. Let’s find out what this means and also what steps we can take suo moto to avoid any unnecessary repercussions.

If an exporter knows fully well that the receipts against exports are going to be delayed, then read on.

There are times when exporters sometimes face situations where their efforts to realize export proceeds don’t materialize. Under the Foreign Exchange Management Act (FEMA), there is a structured process to deal with such instances, allowing exporters to write off unrealized export proceeds under specific conditions. Below paragraphs outline the process, conditions, and steps that exporters must follow to write off exports while staying compliant with FEMA regulations.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

Freezone

Free zones, commonly known as free trade zones, are designated areas within a country that offer businesses unique regulatory and tax advantages to attract foreign investment, enhance trade, and promote economic growth. In the United Arab Emirates (UAE), these zones are particularly appealing due to their strategic locations, advanced infrastructure, and comprehensive support services.

Establishing a company within a UAE free zone offers a multitude of benefits, including 100% foreign ownership, the absence of personal income taxes, and the full repatriation of profits and capital. These zones are strategically situated near major seaports, airports, and key trading hubs, facilitating seamless access to international markets. Furthermore, the company setup process is streamlined, characterized by minimal bureaucracy and expedited administrative procedures, thereby presenting an efficient option for businesses seeking to expand their operations.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

Golden Visa Residency

The Golden Visa program allows individuals to secure a 10-year residency in the United Arab Emirates (UAE), thereby enhancing the nation’s competitiveness and fostering a conducive environment for business and growth. A comprehensive health insurance policy for the applicant is mandatory during the application process, as mandated by the relevant local authority.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

Gst Update: High Court of Delhi Ruling on Show Cause Notices and Impugned Orders

In a recent decision by the High Court of Delhi, the court addressed a crucial issue regarding the accessibility and handling of show cause notices (SCNs) under the Goods and Services Tax (GST) regime. The case under review involved Himanshu Aggarwal, Proprietor of HMV Mobile Phone Accessories Company, and the Sales Tax Officer Class II.

Published on February 19th, 2025

Taxcompliance

TaxCompliance

5 min read

Biometric-based Aadhaar Authentication for Gst Registration in Bihar, Delhi, Karnataka, and Punjab

Effective from September 6, 2024, GST registration applicants in Bihar, Delhi, Karnataka, and Punjab must follow new procedures for biometric-based Aadhaar authentication and document verification. The recent amendment to Rule 8 of the CGST Rules, 2017, now allows applicant identification on the GST portal through biometric Aadhaar authentication, ensuring greater security and transparency.

Published on February 19th, 2025

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