#FEMA (Transfer or Issue of Security by a Person Resident outside India) 9th Amendment Regulations,2015

RESERVE BANK OF INDIA

(Foreign Exchange Department)

(CENTRAL OFFICE)

NOTIFICATION

Mumbai, the 6th October, 2015

No. FEMA. 353 /2015-RB

Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Ninth Amendment) Regulations, 2015

G.S.R. 759 (E).—In exercise of the powers conferred by clause (b) of sub-section (3) of Section 6 and Section 47 of the Foreign Exchange Management Act, 1999 (42 of 1999), the Reserve Bank of India hereby makes the following amendments in the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA.20/2000-RB dated 3rd May, 2000), namely:-

1. Short Title & Commencement

(i) These Regulations may be called the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) (Ninth Amendment) Regulations, 2015. (ii) They shall come into force from the date of their publication in the Official Gazette.

2. Amendment to Schedule 5:-

In the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside India) Regulations, 2000 (Notification No. FEMA 20/2000-RB dated 3rd May 2000), in Schedule 5,

(A) in paragraph 2,

(i) the existing sub-paragraph (3) shall be re-numbered as Paragraph 2C

(ii) after the existing sub-paragraph (2), the following shall be added namely:-

“(3) A Non- Resident Indian may subscribe to National Pension System governed and administered by 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 annuity/ accumulated saving will be repatriable.”

(iii) after adding sub-paragraph (3) in paragraph 2, the existing paragraph 2C shall be re-numbered as sub-paragraph (4) in Paragraph 2.

(B) In paragraph 3, after the existing sub-paragraph (2), the following shall be inserted namely:-

“(2A) A non-resident Indian who subscribes to the National Pension System, under sub-paragraph (3) of paragraph (2) of this Schedule shall make payment either by inward remittance through normal banking channels or out of funds held in his NRE/FCNR/NRO account.”

[ F. No. 1/26/EM/2015]

B.P. KANUNGO, Principal Chief General Manager

Supreme Court Verdict on Amendment to Overrule a Judgement is not Valid

Honourable Supreme Court in ACIT (Agr. IT) vs. Netley ‘B’ Estate has held that while an amendment to overrule a judgement is not valid, it is permissible to retrospectively alter the character of the levy so as to save it from illegality – (2015-ITRV-SC-163)

#GST to be implemented w.e.f April 1, 2016

GST constitutional amendment may be passed in Winter Session of Parliament

The GST, a much-awaited reform to replace multiple indirect taxes with one levy shall be implemented with effect from April 1, 2016 as all preparations including rules, legislation and others have been duly undertaken.

GST will be a very efficient system of tax collection as there will be no scope for tax evasion and tax base would be widened and collection would be much higher under the GST regime for both the Centre and the states.

GST will promote ease of doing business and would boost the GDP by about two per cent.

Safety and security measures shall be taken care of as GST net has already offered the states to come up on information technology at par.

With almost 90 per cent of villages without electricity in India the issue of rural electrification is being addressed to ensure smooth implementation of the GST.

There is consensus to impose purchase tax on agriculture produce and therefore it will come under the purview of the GST.

GST is necessary for India’s economic development. Consumers are paying about 29 per cent both visible and invisible tax, hopefully GST will be on a lower side.”

Rate of service tax will go up from the existing 16 per cent but the exact percentage could be known only after the declaration is made.