Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TDS :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: VAT RATES :: ACCOUNTING STANDARD :: due date for vat payment :: VAT Audit :: articles on VAT and GST in India :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: ACCOUNTING STANDARDS
General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

RBI allows issuing equities against capital goods imports
July, 01st 2011

The Reserve Bank of India (RBI) today allowed domestic companies to issue shares against import of capital goods and machineries, making it easier for them to expand.

However, companies will have to get prior approval of the government to trade equities for imports.

"...It has been decided to permit issue of equity shares /preference shares under the government route of the FDI scheme for import of capital goods/machineries/equipments [including second-hand machineries]...," the RBI notified.

The notification follows liberalisation of Foreign Direct Investment (FDI) policy in March.

Then, the government had permitted trading in equity or preference shares for settlement of capital import bills to help the domestic industry to access latest machinery without paying cash.

"All such conversions of import payables for capital goods into FDI should be completed within 180 days from the date of shipment of the goods," the central bank said.

Earlier, an Indian company was only allowed to issue shares to a foreigner in lieu of technology or technical know-how and against royalty and lumpsump fees.

Equities could also be issued under the FDI norms against pre-operative expenses like payment of rent.

The central bank has said that for conversion of shares for payments of imported capital goods, the company had to pass a special resolution.

The government approval would be subject to pricing guidelines of RBI and appropriate tax clearance.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Desktop Application Development Outsourcing Desktop Application Development Offshore Desk

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions