Taxation & Accounting

Category: Service Tax (page 1 of 389)

Companies Act – Minimum Subscription

Companies Act – Minimum Subscription

Minimum subscription refers to the minimum amount which a company  should raise at the time of issuing capital. The requirement for minimum subscription applies to all companies which raise funds from the public. The company may successfully procure the amount of minimum subscription. In such circumstances, the company is allowed to retain the capital, which has been collected from the investors. Alternatively, the company may not be able to obtain the minimum subscription successfully. Hence, according to the Companies Act, there is an inadequacy in the minimum subscription. In such cases, the company should refund the application deposit. The provisions relating to minimum subscription are available in Section 39 of the Companies Act.

The GoI observed that when public companies opted for the issue of capital, the public response may be inadequate. On account of the poor public response, the confidence of the investors in the regulatory mechanism may diminish. Hence, in keeping with the expectations of the investors, the issue of capital should be halted. Cancellation of the issue should be performed in case the public does not avail the minimum subscription. The objective of Section 39 is to introduce a prohibition on the allotment of securities. As per the section, the allotment should be prohibited when the minimum subscription requirement is not fulfilled.

The provisions relating to minimum subscription should be applied whether a company makes an issue of debt or equity securities. The requirement for minimum subscription is determined through a ceiling limit. At present, the Government of India (GoI) has fixed the ceiling limit as ninety per cent. The ceiling limit should be applied to the total capital issued by the company. The company should collect at least ninety per cent of the capital offered to the public. In case the value accumulated amounts to less than ninety per cent of the capital issued, the entire amount should be refunded. The value accumulated refers to the amount of capital raised through an issue.

Acceptance of Application Deposit

  • The application deposit payable on security should be more than five per cent of the nominal value. Also, the company should not collect the application deposit by cash. The company may receive cheques or demand drafts for the payment of the application deposit. In such cases, the company should ensure that the cheques or demand drafts received are not post-dated instruments.
  • The funds collected by the company through an application deposit should be maintained in a separate bank account. The funds should be used only for the purposes mentioned in the prospectus. A company is not allowed to make use of capital funds towards the settlement of short term credit obligations or revenue expenditures. The company may be having working capital needs which require immediate disbursement of funds. In such cases, the company should ensure that capital funds are not deployed towards the disbursement. Thus, funds deposited by the investors should only be used to purchase separately distinguishable assets.
  • The application deposit may be less than the face value of the capital issued. In such cases, the ceiling limit of ninety per cent should be applied to the number of applications sold. Cheques submitted to the company for paying the application deposit may not be successfully cleared. In such cases, the ceiling limit should be calculated after excluding the value of cheques which are not cleared. The ceiling limit should be applied after the defaulting subscribers have been excluded. A defaulting subscriber is a person who has paid the application deposit but has not made any subsequent contribution towards the capital.
  • The company may make a statement concerning minimum subscription in the prospectus. The statement may indicate a lower ceiling limit than ninety per cent. In such cases, the statement will not be valid. Hence, the ceiling limit of ninety per cent will continue to apply to the company. Alternatively, the company may indicate a ceiling limit which is higher than ninety per cent. In such cases, the company is bound by the higher ceiling limit.

Refund of Application Deposit

  • A company can commence allotment of securities only after the targeted minimum subscription is fulfilled. There may be a failure on the part of the company to reach the targeted minimum subscription. In such circumstances, the liability to make a refund will arise for the company. The Act requires that in case of a failure to reach the minimum subscription, the application deposit should be refunded to the extent of one hundred per cent. In case the company fails to refund the application deposit, the affected person may file a suit against the company. The maximum time limit for filing a lawsuit is three years.
  • The time limit allowed for the collection of the minimum subscription is one hundred and twenty days. The time period should be calculated from the date of opening of the issue. Also, the minimum subscription should be collected within thirty days from the date of issue of the prospectus. The time limits mentioned are applicable only for receipt of the minimum subscription. Hence, allotment of securities can be made even after completion of the time limit.
  • In case the minimum subscription is not reached, the application deposit should be refunded. The refund should be made within fifteen days from the date of closure of the issue. In case there is a delay beyond fifteen days, the applicants should be repaid with interest at the rate of fifteen per cent per annum. The directors of the company should also bear the liability to meet the interest obligation. The refund should be made directly to the bank account of the applicant.
  • In case there is any default in complying with the above provisions, the company and the defaulting officers should pay a fine of one thousand rupees per day. The penalty will be calculated for the number of days for which the company has committed the default. However, the maximum amount of fine payable cannot exceed one lakh rupees.

Filing Requirements

  • When the company makes any allotment of securities, Form PAS 3 should be filed with the Registrar of Companies (RoC). The time limit for filing Form PAS 3 should be thirty days from the date of allotment. The person submitting the form should have been authorised by a resolution passed by the board of directors. The corresponding board resolution number should be entered in the form.
  • The fees payable with the form depends on the paid-up capital of the company. For companies having a capital of less than one lakh rupees, the fees payable should be two hundred rupees. In the case of companies whose capital is more than one lakh but less than one crore rupees, the fees payable ranges from three hundred to five hundred rupees. If the capital of the company is greater than one crore rupees, the fees payable should be six hundred rupees.
  • The form should be authenticated by a practising Chartered Accountant (CA) or Company Secretary (CS). The CA or CS should affix the digital signature to the form. The purpose of the authentication is to communicate that the form contains correct information about the allotment of securities.
  • The following enclosures should be attached with Form PAS 3 as Portable Document Format (PDF) files:
    • A list of allottees which mentions the name, age, address, occupation and number of securities allotted, duly certified by the board of directors by passing a resolution
    • In case the securities are allotted for non-cash consideration, a copy of the sale contract works contract or intellectual property services contract
    • A report from a registered valuer ascertaining that the consideration for the contract has been calculated as per a genuine methodology
    • In case the contract has been implemented based on an oral agreement, a statement of particulars of the contract executed on a non-judicial stamp paper of a value of three hundred rupees
  • The format for Form PAS 3 is given below for reference:


The post Companies Act – Minimum Subscription appeared first on IndiaFilings – Learning Centre .


National Policy on Electronics

National Policy on Electronics

The National Policy on Electronics was proposed by the Ministry of Electronics and Information Technology to promote the growth of the Electronics System Design and Manufacturing (ESDM) industry across the country. In this article, we look at the National Policy on Electronics in detail.


The National Policy on Electronics aims at positioning India as a global hub for Electronics System Design and Manufacturing by creating an enabling environment for the industry to compete globally.

Features of National Policy on Electronics

The features of the National Policy on Electronics are listed follows:

  • Creating an ecosystem for the EDSM Sector by promoting manufacturing and export in the entire value-chain of ESDM
  • Providing support and incentive for manufacturing of core electronic components.
  • Providing special incentives for mega projects which are extremely high-tech and entail huge investments, such as semiconductor facilities display fabrication, etc.
  • Formulating suitable schemes and incentive mechanisms to encourage new units and expansion of existing units.
  • Promoting industry-led R&D and innovation in all sub-sectors of electronics such as 5G, Internet of Things (loT) or sensors, Machine Learning, Virtual Reality (VR), Artificial Intelligence (Al), Robotics, Drones, Photonics, Additive Manufacturing, Nano-based devices, etc.
  • Providing support and incentive for significantly enhancing the availability of skilled manpower.
  • Building special thrust on Chip Design Industry, Automotive Electronics Industry, Medical Electronic Devices Industry and Power Electronics for Mobility and Strategic Electronics Industry
  • Creating a Sovereign Patent Fund (SPF) to promote the development and acquisition of Intellectual Property (IP) in the ESDM sector.
  • Promoting trusted electronics value chain initiatives to improve national cybersecurity profile.


The Ministry of Electronics and Information Technology in coordination with the concerned Ministries provide support to the industry for expansion of electronics hardware manufacturing across the country. The MeitY will implement the decision, as indicated below:

Developing and Mandating Standards

  • Setting up of standards development framework for developing standards which is based upon global benchmarks for electronics, IT, e-Governance, etc.
  • Promoting the participation of domain experts from the Central Government, Startups and industry and global standards.
  • Setting up an institutional mechanism within MeitY for mandating for standards for electronics products.
  • Creating lab infrastructure capacity for testing of electronic goods, which includes cybersecurity.

Ease of doing Business

The National Investment Promotion and Facilitation Agency will facilitate investment in EDSm sector will facilitate the investment in coordination with the Government for the establishment of joint ventures along with speedy approvals by coordinating with the Government agencies.

Industry-led R&D and Innovation

The Industry-led R&D and Innovation will be encouraged in all sub-sectors of electronics:

  • Support for setting up incubation centres will be provided and strengthening the focus area of the existing centres to suit the future research requirement in the emerging technology areas of electronics.
  • Support for a startup in these emerging areas from supporting concept to the development of products which includes complete chain value.
  • Provide Sovereign Patent Fund (SPF) to promote development and acquisition of Intellectual property (IP) in the ESDM sector.
  • Provide support for the creation of Intellectual property (IP) and patents, which includes Research and Development (R & D).

Export Promotion

Provide incentives for promoting export of electronic goods by empowering exporters by facilitating global market access.

Cyber Security

  • Provide support for the development of capabilities for testing.
  • Provide support for the usage of IT products tested and evaluated for security-based upon standards like ISO 15408.
  • Promote startup for development of nano-based devices, photonics and cybersecurity products.
  • Promotion of Electronic Components Manufacturing Ecosystem
  • Provide incentives for manufacturing of core electronic components, lithium-ion cells for electronic or EV applications, fuel cells, optical fibre, solar cells, the raw material for electronic components etc. and ATMP of semiconductors.

Mega Projects

  • Provide incentives for mega projects which are high-tech and huge investments such as semiconductor facilities, display fabrication and LED chip fabrication units which includes infrastructure status to these units.
  • Promote investment in existing semiconductor facility, which includes support for setting up of Research and Development (R & D) units.

Developing core components in the sub-sector of Electronics

Provide support for developing core components in the following sub-sectors:

Promotion of the chip design industry

  • Provide support for the chip design industry through venture capital funding through a dedicated nodal agency. Also, India Fabless Semiconductor Venture Fund will be provided to directly invest in seed capital and venture equity in Indian Fabless semiconductor companies.
  • Incubation centres will be developed to provide necessary EDA tools, Intellectual Property (IP), prototypes and Assembly, Testing, Marking and Packaging (ATMP) required for startups.

Promotion of Medical Electronic Devices Industry

  • Promote Research and Development (R & D) through PPP model with the funding support from the industry with a specific focus on critical components.
  • Develop infrastructure for carrying out the evaluation, compliance by setting up new laboratories and upgrading the existing laboratories, which includes subsidies to MSMEs.
  • Provide support for the startup through manufacturing facilities and open labs programme, etc.
  • Provide support for enhancement of the manpower required for the industry, which includes the practice of skills in medical electronics.

Promotion of Electronics Industry and Power Electronics for Mobility

Promote exports through branding programme, marketing incentives, special incentive and export incentives.

Provide support for Research and Development (R & D), innovation to the upcoming generation, power electronics, intelligent transportation systems and automation.

Develop a Centre of Excellence (CoE) in engineered controls, electronics and software.

Promotion of Electronics Manufacturing Services Industry

Promote key activities under EMS for creation of the components under the manufacturing ecosystem in the country:

  • PCB assembly, which includes sub-assemblies.
  • Functional testing
  • Engineering and design of PCB
  • Product and component design

Promotion of Assembly, Testing, Marketing and Packaging Industry

Providing policy support for Assembly, Testing, Marketing and Packaging INdustry manufacturing semiconductor IC and memory chips.

The post National Policy on Electronics appeared first on IndiaFilings – Learning Centre .


Export Quality Control and Inspection Act

Export Quality Control and Inspection Act

The Export Quality Control and Inspection Act were enacted in the year 1963 to improve the overseas trade of India through quality management, assessment, and other matters. This act has undergone many changes as per the need of the policies as and when required. This Act is applicable throughout India.

Functions of the Council

  • Taking measures for the enforcement of quality control and inspection of commodities intended for export.
  • Scheduling programs on granting aid to the exporting agencies which are deemed fit for quality control and inspection.
  • Adding manpower who have specialised knowledge and practical experience in matters about trade and commodity.
  • The Council may also have specialist committees to investigate issues relevant to its roles.

Following are the orders or direction given by the Central government from time to time.

Quality Control and Inspection

The Central Government, after discussions and agreement with the Council, will publish in the Official gazette on:

  • Notifying exporters on commodities/materials that need to go through quality control, inspection, or both processes before export.
  • Specifying the type of quality control or inspection processes applied to a notified commodity/material.
  • Setting up one or more standard specifications for an informed commodity/material.
  • Prohibiting the international export of a commodity if the commodity is not accompanied by a certificate of approval by the Central Government.


The rules are made by the Central Government and notified in the Official Gazette. These rules are framed without bias. Rules may provide for:

  • Travelling and DA are payable to members of the Council.
  • Persons co-opted under this Act.
  • Functions of the Council
  • Appointment of officers and other employees of the Council
  • Procedure to be followed for various types of quality control and inspection
  • Conditions which a testing house, surveyor or sampler should satisfy for purposes of approval by the Central Government
  • Fees chargeable for examination and issue of approval export certificates.
  • Standard in which accounts of the Council needs to be maintained and audited

Recognise Marks to Denote Conformity with Standard Specifications

  • The Central Government may accept any mark concerning a notified commodity to signify that such merchandise/products conform to standard specifications.
  • This above mentioned applies to:
    • Any mark/seal applied to a notified commodity
  • Any covering containing or label attached to it
  • Goods or merchandise may be checked by officers or customs if they have any question on the genuineness of the seal.

Obtain Information from Exporters

  • The Central Government or any officer can notify exporters to furnish information on products, individuals involved in the manufacture of products, individuals dealing in commodities for exports

To Enter, Inspect, and Seize Commodities etc

The appointed officer can enter the premises if:

  • Any export material has been changed after inspection by an authority.
  • Any book or document, useful to this Act, is believed to be concealed. Inspection can be carried out by the authority in such cases.
  • If an authority suspects that something is wrong with the packed product, or if the product is mixed with other goods or materials, then that commodity mixed up with the other contents is liable to be confiscated under this Act.
  • If the authority confiscates a commodity and no notification is given by him/her/them, then that commodity is returned back to the owner within 6 months of confiscation.
  • An officer may confiscate any document or material relevant to this Act if he/she finds them useful to investigate. However, photocopies of confiscated documents can be taken by the owner in the presence of officers.

Power to Seize Conveyances and Confiscate

  • If any animal is used or believed to be used for transportation of goods, or if the owner may have contravened the provision of this Act, then the authority may confiscate those goods and the animal.
  • This applies to other means of transport (air, vehicle, vessel).
  • The authority may conduct a thorough inspection of goods in the vehicles, other transports, or animal used to transport goods.
  • If it is necessary to stop such an animal or other conveyance, then lawful means can be used by the authority to stop them or fire at them if they refuse to comply.
  • If a commodity is altered or mixed with other goods, or a certificate is obtained by misrepresentation or fraudulently, or provisions of this Act contravened by wrong actions. Commodities and other products, or the document are liable to be confiscated.
  • Other punishments is not prevented by confiscation or penalty imposed on an individual.
  • Confiscation or penalty is adjudicated by the Director of Inspection and Quality Controler appointed officer.
  • Confiscation or penalty is not be imposed on the concerned person without giving notice. The notice also provides a timeline for the person to state his case against confiscation or penalty.

Petition against Confiscation

  • An owner can file an application to the Central Govt on the confiscation of his documents by officers. The application should mention on:

    • Reasons for objecting confiscation
    • Requesting for the return of his entitled documents or things
  • The Central Govt, after the receipt of the application, may reverse the decision of confiscation after finding it clean based on:
    • The owner’s legitimate documents – signature, attestation, and handwriting wherever applicable.
    • The owner’s legitimate document, duly authenticated by the foreign authority, received from abroad.

Option to Pay Fine instead of Confiscation

A penalty can be paid by the owner or any person, where the amount does not exceed the commodity value. Any person who contravenes the Act by not paying the penalty, or assist in contravening, acquire possessions of the commodity by carrying, selling, removing, depositing, then that person is liable to pay the penalty not higher than 5 times of commodity value or Rs.5000.

Option for Appeal

  • If a person is aggrieved by the confiscation of his commodity or penalty imposed by the Director-General or appointed authority, appeal can be made within 45 days from the day the order was issued.
  • If a person is prevented from making an appeal, then the appellate can grant an extension of another 45 days to that person, if the appellate authority is satisfied with information pertaining to this matter.
  • An appeal can be entertained if the penalty is deposited.
  • If the appellate authority finds that the deposited penalty may cause financial difficulty on that person, the decision may be revered by the authority on that person unconditionally or on a conditional basis.

Continuance of Proceedings in the event of Death or Insolvency

If a person or an appellant dies or is in a state of bankruptcy, then legal representatives on the appellant’s behalf can appeal.


  • If a certificate is obtained fraudulently, or fraudulently puts a seal on the commodity, then that person is:
  • Punished for the first offence with an imprisonment of a term, 2 years, a penalty that may extend to 5000 INR, or both.
  • Punished for the subsequent or second offence with imprisonment for a term which may extend 3 yearThis is also accompanied with a penalty that may extend to 5000 INR. Without adequate or special reasons from the person, imprisonment is not less than 3 months.
  • If a fine is not paid by the person as imposed by the appellate authority, then he/she is punishable with imprisonment for a term that may extend to 2 years or with a fine, or both.

Offences by Officers and Employees of Agency

  • If any surveyor, sampler, or appointed authority commits an offence of any kind or contravened pertaining to his/her duties, he/she is punished with imprisonment for a term that may be extended to 2 years, or fine extending to five thousand rupees, or with both.
  • If any officer searches or authorises other officers to search a place without good reasons to believe that commodity, account books, documents, or things are concealed, he/she is punishable with imprisonment for a term that is extendable to six months, or fine that may go up to1000, or with both.
  • If any information regarding commodity is disclosed by any of the officers, then he/she is punished with imprisonment for a term that is extendable to six months, or fine extendable to1000, or both.

Offences by Companies

  • If offences committed by a company , person in charge at the time when offence committed, or company as a whole is deemed to be guilty. These entities are liable to be punished accordingly. However, the concerned individual will not be punished, if the offence was committed without his knowledge.
  • Besides, he cannot be punished if he took responsibility to prevent such offence from happening.
  • Concerned individuals who are negligent on their part or encourage such offence are also liable to be punished. Those may include – manager, director, secretary, or any other officer.

Procedure for Prosecution

Prosecution of guilty parties can only happen with the consent of an officer authorized by the Central Government, Director General, or by special orders.

Protection of Action taken in Good Faith

  • No legal action, prosecution or other legal proceedings can be taken against the Council/any officer/employee of the Government for anything intended to be done under this Act which is in good faith.
  • This may include damages caused or likely to be caused at the time of carrying out duties under this Act which is done in good faith.

Suspension of Duties under the Provisions of the Act

  • Operations or duties performed can be relaxed or suspended by the Central Govt by notification with respect to certain commodities.
  • This suspension notification is made official only after the meeting in the Parliament (both houses) within a period of 30 days in one or different sessions. However, this annulment is done without partiality.

Act to Override other Enactments

When an export commodity is notified under this Act, the provisions of this Act is official and notified. Other Acts with provisions of quality control and inspection prior to the export of such commodity do not come on a par with the Act frame by the Central Government.

The PDF form of this act can be accessed from the below link:


The post Export Quality Control and Inspection Act appeared first on IndiaFilings – Learning Centre .


Protection of Plant Varieties and Farmers’ Rights Act

Protection of Plant Varieties and Farmers’ Rights Act

The Protection of Plant varieties and Farmers’ Rights Act was implemented by the Government of India. The act was set to protect the new varieties of plants. This provides the process of registering the new variety plant to safeguard it. This act also streamlines the farmers ’ rights on the new variety of plants.

Eligibility for Registration


People who can apply for the registration of the plant varieties are:

  • Anybody who claims to be the breeder of the variety.
  • The Breeder’s successor.
  • Anybody assigned by the breeder to apply.
  • Any farmer, group or community of farmers who claims to be the breeder.
  • An agricultural institution or university.

Plant Varieties

The plant varieties that can be registered are given below:

  • The new varieties that can be registered should follow the criteria of uniformity, distinctiveness, novelty and stability.
  • The extant varieties can be registered, if it follows the conditions of stability, distinctiveness and uniformity.

Non-Applicability for Registration

The new variety cannot be registered if the denomination:

  • Does not identify such variety.
  • Causes confusion in the characteristics, value identity of the variety, the identity of the breeder.
  • Causes confusion among the public about the identity.
  • If it hurts the sentiments of the religions in India.
  • If it is banned to use as emblem or name under the Emblems and Names Act, 1950.
  • If it is of the geographical name.

Every application of the registration should assign a denomination to the variety. If the denomination does not satisfy the regulations, then another denomination should be proposed. The denomination should not be registered as a trademark.

Form of Application

The applicant for registration should have the following:

  • A sworn in statement about the variety stating that it does not contain any gene sequence.
  • Data about the parental line of the variety.
  • The geographical location from where the variety is taken in India.
  • A small description of the variety.
  • The fees required.
  • A declaration stating that the variety is lawfully acquired.
  • A quantity of seeds for conducting tests.
  • If the genetic material is conserved by the rural or tribal families, then the breeder should furnish the details.

Advertisement of the Application

When the application is accepted, the registrar will advertise it for any objections. A writing notice can be submitted by anyone to raise an objection against the application within 3 months of the published date.

Conditions to Oppose the Registration

The following are the conditions to oppose the registration by any person:

  • For the breeder’s right.
  • If the variety is not applicable to be registered.
  • The variety portraying a negative effect on the environment .
  • The grant of the certificate may not be in the interest of the public.

The applicant should reply to the opposition of the person within two months. If not, the application will be abandoned. If the applicant or the opponent does not reside or do business in India, then he should give security for the cost of the proceedings. By default, the case will be abandoned.

Registration for Essentially Derived Variety

  • The application process is the same as for the plant variety.
  • Tests will be conducted by the Authority to see if the essentially derived variety is derived from the initial variety.
  • If the authority is satisfied then he will approve for the register, if not the application will be refused.

Certificate of Registration

If the Application of the registration of the variety is accepted without any opposition, then the variety can be registered. A certificate of the registration will be issued. If the registration of the variety is not completed within 12 months, then the application will be cancelled. The certificate of the registration will be valid for about 9 years in the case of vines and trees and 6 years in the case of any crop.


The Authority opens up the claims of the benefit-sharing to the registered variety. Any person or organisation (both governmental and non-governmental) can submit the claim of the registered variety along with the fees required. If the claimant has the extent and nature of the use of the genetic material of the variety for development and for using it commercially in the market, then the amount of benefit sharing can be claimed. The amount will be deposited by the breeder in the National Gene Fund, which will be paid to the claimant. The Breeder of the registered variety should provide a certain quantity of seeds along with the parental line seeds in the National Gene Bank.

Registration to confer the rights of the variety

The breeder can authorise anybody (agent or the licensee) to sell or produce the variety. The agent or the licensee should apply with the prescribed fees. Then the registrar would register him as the agent or licensee of the variety for which he has entitled the right. A certificate of Registration will be provided to him.

Registration from Convention Countries

If a person has applied for the breeder’s rights in the convention country, then he should apply for the registration of the variety within 12 months in India.

Surrender of the certificate of the registration

A breeder can at any time give the notice to surrender the certificate. The agent or licensee can oppose the notice of surrender. If the registrar is satisfied with the applicant, then he can accept the offer to surrender.

Revocation of the protection of the variety

The protection granted to the breeder can be revoked on the following grounds:

  • If the certificate of registration is provided with incorrect information.
  • The certificate is given to a person who is not eligible.
  • If the breeder did not provide the necessary information, documents or materials.
  • If the breeder fails to submit another denomination of the variety.
  • If the breeder did not follow the rules of the act.
  • If the breeder fails to give the seeds or propagating material to the person with a compulsory license.
  • If the breeder, agent or the licensee does not pay the fees for two consecutive years.

Farmers’ Rights

  • A farmer who has developed a new variety can register in the same way as the breeder.
  • The farmer can save, sell, share or sow his produce just the same way before registering.
  • The farmer does not have to pay any fees in the process.
  • The farmer will not be accused of infringement if he is not aware of the rights of the act.
  • The authorisation of the farmer’s essentially derived variety shall not be given to the breeder without the concern of the farmer or group of farmers.

Rights of the Researcher

  • Any registered variety can be used for conducting any research or experiment.
  • Use any variety to create new variety.

Compulsory License

After the expiry of 3 years from the date of the registered certificate, any person can place the requirement of the variety to the Authority. The requirement can be such as:

  • Public’s need for the seeds
  • Availability of seeds at a reasonable price

The Authority after consultation can order the breeder to grant a license to the applicant and register the applicant as a licensee. If the authority is satisfied with the breeder, then the compulsory license will be adjourned.

The duration of the compulsory license varies from case to case. The compulsory licensee should provide to the farmers the seeds or the propagating material at a reasonable price. The compulsory licensee should not import the seeds from abroad. The Authority can revoke the license if the licensee has violated the conditions of his license. The authority has the rights to modify the terms and conditions of the license for the licensee at any point.

Plant Varieties Protection Appellate Tribunal

An appeal shall be made in writing and should contain the necessary particulars. The appeal can be made from any decision or order of the Registrar or Authority. The tribunal passes the order within a year after hearing from both the parties.


  • Any person applies false denomination to the variety, false name of the country, false name and address will be imprisoned from 3 months to 2 years or with a fine from Rs.50,000 to Rs.5 lakh or with both.
  • Any person sells the variety with a false denomination will be penalised with an amount of Rs.50,000 to Rs.5 lakh or imprisonment from 6 months to 2 years or with both.
  • Any person who falsely represents a variety will be imprisoned from 6 months to 3 years or pay a fine of Rs.1 lakh to Rs.5 lakh or both.
  • Any person committing the same offence second time will be imprisoned from 1 year to 3 years or penalised with an amount from Rs.2 lakh to Rs.20 lakh or both.

The post Protection of Plant Varieties and Farmers’ Rights Act appeared first on IndiaFilings – Learning Centre .


Indian Stamp Rules 2019

Indian Stamp Rules 2019

The Government of India (GoI) introduced the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019. The rules provide a consistent basis for the levy of stamp duty on securities-related transactions. The applicability of stamp duty on the issue of listed securities will be determined based on the Stamp Act, 1899. The company which issues the securities should pay stamp duty as per Section 8A of the Act. The requirement to pay the stamp duty will arise whether or not the securities are issued in dematerialised form.

States have the right to determine how the Act should apply to securities-related transactions. Hence, the GoI observed a lack of uniformity in the procedures which govern the collection of stamp duty. Thus, the GoI introduced the Indian Stamp (Collection of Stamp-Duty through Stock Exchanges, Clearing Corporations and Depositories) Rules, 2019. On 8th January 2020, the GoI issued Notification GSR 19(E). The notification states that the rules will come into effect on 1st April 2020.

Stamp Duty on Sale of Securities

  • The rate os stamp duty, which should be applied depends on the type of securities which are issued. For government securities, stamp duty need not be paid. For debentures, the rate is 0.0005%. For other securities, the rate is 0.005%.
  • The stamp duty must be collected on the day of settlement. The day of settlement refers to the day on which ownership of the securities passes to the buyer.
  • The security transferred may be an option instrument. In such cases, the buyer should separately identify the premium on each transaction. The premium paid should be reported to the collection agent.
  • The securities may be allotted through the private placement mode. In such cases, the stamp duty should be borne by the person who is making the offer. The stamp duty shall be calculated on the market value of the security or the offer price, whichever is higher. The stamp duty will become payable once the offer is completed.
  • The consideration for the offer may not be fully settled. Alternatively, the parties may agree that the consideration can be settled in the future on an instalment basis. In such cases, stamp duty should be collected on the entire sale consideration. The consideration is based on the amount reported to the stock exchange.
  • Stock exchanges should provide information to the concerned depository about the transfers executed on the trading platform. The information should be furnished before the day on which the settlement obligation is finalised by the Clearing Corporation of India Limited (CCIL). The requirement to provide information to stock exchanges applies to securities which are held in the dematerialised form.

Sale of Securities Through Depositories

  • Transactions which involve a transfer of listed securities can be performed exclusively through depositories. Such transfers can be classified into delivery and non-delivery transactions. Under the delivery model, the parties transact intending to transfer ownership. Under the non-delivery model, the parties transact intending to earn revenue without a change in ownership. Hence, revenue is obtained from fluctuations in the market value of the securities. The CCIL determines whether a transaction falls under the delivery or non-delivery model.
  • The depository may issue a certificate of security for the securities. The certificate is issued when the securities are maintained in a dematerialised format. In such cases, stamp duty should be paid in the same manner as a duplicate share certificate. The stamp duty should be collected before the occurrence of off-market transfers if any.
  • Depositories are allowed to collect stamp duty from the transferor. The amount of stamp duty should be calculated as a percentage. The percentage should be calculated on the amount mentioned in the delivery instruction slip. The delivery instruction slip can be submitted physically or electronically. However, in the case of dematerialised holding of securities, the delivery instruction slip should be presented in the electronic mode.
  • Depositories should ensure that the following requirements relating to disclosure are satisfied before remitting the stamp duty to the collection agent:
    • Disclosure of the manner of identification of market transfers
    • Disclosure of the manner of ascertainment of sale consideration
    • Disclosure of reasons for transfer
    • Disclosure of whether consideration is payable in instalments or as a lump-sum
    • Disclosure of the extent of consideration already paid and the amount remaining

Recovery of Stamp Duty

  • The applicable rate of stamp duty should be recovered before the transaction is updated in the digital records of the depository. Further, at the time of allotting securities, the issuing company should submit an allotment list to the depository.
  • Securities can be transferred on account of the fulfilment of a pledge. In such cases, stamp duty should be collected from the lender. The applicable percentage of stamp duty is calculated on the market value of the securities.
  • A company may perform a stock split, consolidation, mergers and acquisitions. On account of such actions, additional securities may be created, or existing securities can be destroyed. In such cases, the depository should not collect stamp duty. If there is no new issue to the investors, there is no requirement to charge stamp duty. However, in case there is a change in beneficial ownership of the securities, stamp duty should be paid.
  • In the general body meeting of a company, an agreement may be executed for purchasing paid-up capital . The capital may belong to minority shareholders. In such cases, the depository should levy stamp duty from the company making the issue of additional securities.

Collection Agent

  • A collection agent is a person responsible for collecting the stamp duty from the stock exchanges and depositories. He should also remit the stamp duty to the government before the seventh of the following month. The stamp duty collected should be rounded off to the nearest rupee.
  • The collection agent can deduct facilitation charges before transferring the stamp duty funds to the government. The agent is eligible to collect a maximum of 0.2 per cent as facilitation charges. The rate of 0.2 per cent should be applied to the total value of stamp duty obtained.
  • The collection agent should deposit the funds of stamp duty received in one of the following accounts:
    • The account maintained by the state government with the Reserve Bank of India (RBI)
    • The account maintained with any nationalised bank, after obtaining permission from the state government

Filing Requirements

  • The collection agent should submit a return before the seventh of every month. The purpose of the return is to inform the government about the amount of stamp duty collected. A yearly return should also be submitted. The last date for filing the return is thirtieth June of every year. The return should be forwarded to the treasury department of the state government.
  • The return requires the agent to inform the government in case there are defaulters. The return can be submitted manually or through the electronic mode. However, electronic filing of the return is possible exclusively when the state government has provided a website. The website should allow returns to be filed in the electronic mode. In case there is no website, the return should be filed manually.
  • In case the collection agent is a company, the return should be signed by the Managing Director (MD). In other cases, the principal officer of the organisation should sign.
  • The return should be filed as per the prescribed format. The format is given below for reference:


The post Indian Stamp Rules 2019 appeared first on IndiaFilings – Learning Centre .


Himachal Pradesh Industrial Investment Policy

Himachal Pradesh Industrial Investment Policy

Himachal Pradesh, owing to its vast area of land and other striking geographical features, is endowed with natural resources suitable for industrial and other business opportunities. The Industrial Investment Policy was launched in September 2019 to improve the industry sector, especially MSME s in the state, through incentives and special attention.

Various business opportunities are available to all-scale industry sectors and single entrepreneurs in the present period of an upward trend in investments, with the core economic strength on business activities related to:

  • Agriculture
  • Horticulture
  • Animal Husbandry
  • Limestone mines and other related activities in the primary sector

Besides, industries (anchor industries) that have been running for a very long time also have the opportunity to access State Government incentive benefits in a way to ensure financial prosperity and more employment opportunities to the local people.


  • To create an ecosystem compatible with industries
  • To improve and increase the scale of economic development
  • To provide more employment opportunities
  • To ensure sustainable development & balanced growth of industrial & service sectors


  • To promote ease of doing business (EODB ) through digital facility and self-certification
  • To serve as a standard for creating a friendly-investment climate for existing industries to prosper
  • To attract new investments in the state to create more job opportunities for young people, while keeping the development of Industrial & Service Sector in mind
  • To simplify the procedures related to infrastructures, human resource, access to market
  • To improve food industry sectors, agriculture, and horticulture in a way to ensure rural prosperity
  • To cater to MSME sectors for job opportunities and financial growth across the state and benefit stakeholders
  • To encourage start-ups and entrepreneurship to create and generate local businesses
  • To encourage large investments to expand the scale of economic development, employment opportunities, revenue generation, and remunerative prices to local resources
  • To improve the lifestyle of weaker sections of society

Strategy of the Policy

  • To make rules and regulations easy by introducing self-certification, clearances in a timely manner to ensure EODB through the digital facility
  • To create and upgrade of existing industrial infrastructures
  • To create a private land bank
  • To make allowances for incentives and concessions for industries for economic development. This purpose is for the benefit of the majority of H.P natives to achieve economic prosperity.
  • To create a favorable environment for:
    • Start-ups
    • Sustaining traditional cottage industries
    • Technological improvement
    • Recovering from industrial weakness
    • Promoting Research and Development
    • Industrial productivity
  • To create awareness by giving importance to:
    • Cottage handloom and handicraft industries
    • Rural-based economic sectors like – Food processing, Agriculture, and Horticulture
    • Tourism
  • To create an awareness of a clean environment among industries that causes pollution. To insist and encourage industries to go for pollution-free technologies.

Positive Aspects of Investments in Himachal

Regardless of the rough geographical pattern, many investors are enticed because of positive factors like:

  • Low-cost quality power
  • Harmonious industrial relations
  • Low cost of land
  • Clean environment
  • Investor-friendly administration
  • Attractive incentives
  • Tax concessions
  • Accessibility to northern markets of India

Eligibility for Availing Incentives

  • Industrial sectors that eligible for incentives are:

    • All New Industrial Enterprises
    • New Enterprises involved in “Specified Category of Service Activitiesâ€
    • All Existing Industrial Enterprises opting for Substantial Expansion
    • All Existing Service Enterprises involved in “Specified Category of Service Activities†opting for Substantial Expansion
  • The aforementioned categories of industries are eligible provided:
      1. Requirements are met with respect to the eligibility criteria & conditions as per the Rules regarding Grant of Incentives, Concessions & Facilities to Industrial & Service Enterprises in Himachal Pradesh, 2019
      2. Employment is given directly by industries to a minimum of 80% people of Himachal native of all social backgrounds on a regular, contractual-based, etc. (OR)
      3. Employment is given to 80% of Himachal natives through “contractors†or “outsourcing agenciesâ€Â at the time of initiating commercial operations (or) during commercial services by the new enterprises established under this policy.
      4. Additional employment is given to at least 80% of Himachal natives by existing enterprises involved in the substantial expansion.
  • Incentives are effected from the day of commencement of industrial operations (OR) from the date of permission given by the relevant or concerned department to incentivize eligible industries.

Incentives for Small and Medium Enterprises (MSME) and Large scale units

  • MSME companies (in the case manufacturing enterprises) investing an amount of up to Rs.10 Crore in building plant and machinery in the case of


  • MSME companies (in the case of a specified category of service enterprise) investing an amount of up to Rs.5 Crore in instruments would be granted to avail financial benefits by the State Government. They are:
    • subsidy towards the cost of preparation of detailed project report & obtaining certification
    • Incentives related to land and industrial sheds
      • Allotment of land and Industrial Sheds
      • Easy Payment schedule of land or shed premium
      • Provisions of extension in the provisional allotment period
      • Provision to rent out surplus built-up area for industrial use
    • Incentives pertaining to land matters
      • Concessional rate on Stamp Duty and registration fee
      • Exemption from Land Use charges
    • Interest is given as a support by the State Government
    • Assistance for transportation of Plant & Machinery
    • Providing transport subsidy
    • Assistance for the testing facility and quality certification
    • Assistance for set-up pertaining to water conservation, effluent treatment plant, and electrical power supply in compliance with Environment, Health and Safety Standards
    • Net SGST payback
    • Purchase Preference provided an item is not sophisticated, of high technology, and precision standards
    • Incentives also availed to those who come under “special category entrepreneurs †are:
      • Scheduled Castes
      • Scheduled Tribes
      • Below Poverty Line families
      • Women
      • ex-serviceman
      • people with disabilities
      • People affected by HIV/AIDS
    • single person enterprise run by the aforementioned category of people

Incentives for Anchor Enterprises

Anchor enterprises are those that are:

  • First Industrial Enterprise established in an Industrial Area
  • Invested with a Fixed Capital of more than Rs.200 Crore
  • Providing jobs to more than 200 Himachal native on a regular basis.
  • Incentives in the form of concession are provided to enterprises with the rate or premium fixed applicable for:
    • 50%for Industrially developed lands
    • 60%for Industrially developing lands, and
    • 75% for Tribal areas, Industrially undeveloped sectors & panchayats
  • These concessionary rates are given to enterprises if they began their operations within 3 years of handing over of possessed  Such enterprises are granted for easy payment of land premium like MSME industries.
  • Repayment of Net SGST that was paid to the P. Government as per H.P. GST Act, 2017, for 7 years up to a maximum of 80% of Fixed Capital Investment.
  • Stamp Duty & Registration fee pertaining to conveyance deed or lease deed at the rate of:
    • 50% for Industrially developed lands
    • 30% for Industrially developing lands, and
    • 20% for Tribal areas, Industrially undeveloped sectors & panchayats
  • Entire costs are reimbursed in the form of incentives for a period of 5 years with reference to the transportation of raw materials and finished goods (within or out of H.P.), the actual expense rate incurred at 5% of the annual income of Rs.30 lakh per year.

Other Incentives

  • Assistance for Patent Filing and use of green fuel
  • Incentives to EOUs for Promotion of Export
  • Approval of industry infrastructure plan
  • Concessional rate of electricity charges
  • Incentive, concessions, and facilities for creation and upgradation of Industrial Infrastructure by private investors
  • Incentives for Handloom and Handicrafts

 List of Specified Category of Service Activities

  • Information Technology/Information Technology Enabled Services, BPO
  • Warehouse
  • Marketing Yard for Fruits & Vegetables Products
  • Reefer Vehicle
  • Instant Quick Freezing and Irradiation Facilities
  • Ripening Chambers
  • Cold Chain Facility
  • Equipment/Vehicle Maintenance, Repair, and Overhaul (MRO)
  • Equipment Rental and Leasing
  • Industrial R&D Labs, Industrial Testing Lab
  • Laboratories associated with Testing of Raw Materials, Finished Products
  • Weigh Bridge
  • Designs studio
  • Battery Charging Stations for Electric Vehicles
  • Packaging activities
  • Laundry Services
  • Desktop Publishing
  • Research and Development/Industrial Testing Facilities
  • Photographic Lab
  • EDP Institute Established by Voluntary Associations/NGO’s
  • Event Management and Audio Visual Services

List of negative-listed industries in the State

Industries categorized under negative list are not eligible to set up in the state. They are:

  • Tobacco and Tobacco Products like Cigarettes and Pan Masala
  • Thermal Power Plant (Coal/Oil-based)
  • Coal Washeries/Dry Coal Processing
  • Tanning and Dyeing extracts, tannins and their derivatives, Dyes, Colours, Paints and Varnishes, Putty, Fillers and other Mastics, Inks
  • Foundries using Coal
  • Minerals Fuels, Mineral Oils, and Products of their Distillation; Bituminous Substances, Mineral Waxes
  • Cement Clinker and Asbestos Raw, including Fibre.
  • Explosive (including Industrial explosives, detonators & fuses, Fireworks, Matches, Propellant Powders, etc.)
  • Mineral or Chemical Fertilizers
  • Insecticides, Fungicides, Herbicides & Pesticides (basic Manufacture and Formulation)
  • Manufacture of Pulp-Wood Pulp
  • Production of Firewood and Charcoal

Contact Information

Department of Industries

Location: Udyog Bhawan, Bemloe, Shimla-171001, Himachal Pradesh

Email: investments@risinghimachal.in

Call: +91177-2813414

HP Investment Cell: +91177-2622059


Confederation of Indian Industry

Confederation of Indian Industry, Room # 105

Directorate of Industries

Udyog Bhawan, Bemloe, Shimla – 171002

Email: cii.hp@cii.in, manilokeshwar.chauhan@cii.in

Call: +91177-2654323, +91172-5022522


More details on the Himachal Pradesh Industrial Investment Policy can be accessed from the below:


The post Himachal Pradesh Industrial Investment Policy appeared first on IndiaFilings – Learning Centre .


Drug Price Control Order

Drug Price Control Order

The Drug Price Control Order was introduced by the Ministry of Chemicals and Fertilizers. This is implemented for the easy availability of medicines at an affordable price. The order ensures that the quality of the drugs is not compromised with the price of the drugs.

Maximum Price of a Schedule Formulation

The maximum price of a specific dosage under the schedule one can be fixed by taking in the average price to the retailer and the margin percent to the retailer. The margin retail value will be 16%. The maximum price is fixed for one capsule or tablet. The manufacturer should sell only in the fixed price announced by the Government. If the manufacturer sells at a higher rate, then he is liable to pay the overcharged amount as a fine with interest from the date of overcharging. The Government can anytime fix the maximum price or retail price for a drug for a certain period.

New Drug Retail Price for Existing Manufacturers

  • The retail price for a new drug can be fixed in the same way as the maximum price if it is available in the domestic market.
  • If the new drug is not available in the domestic market, then the retail price will be fixed by the Government in accordance with the principles of Pharmacoeconomics.
  • If an existing manufacturer launches a new drug, then he is required to get approval from the government. For the approval of the new drug, the manufacturer should apply in Form I of Schedule II.
  • The government will notify the retail price of the new drug on receiving the application. The price will be recommended accordingly by checking the availability of the new drug in the domestic market. The government will recommend the retail price of the new drug within 30 days of the application.
  • If the manufacturer launches the new drug without any prior permission from the Government, then he is liable to pay the overcharged amount with interest from the date of the launch of the new drug.
  • If the manufacturer sells the new drug at a higher price than the fixed retail price, then the manufacturer should pay the overcharged amount with interest from the date of the overcharge of the new drug.
  • The Government made a cap on a trade margin of 30% and directed manufacturers to fix the retail price. The calculation of the retail price of the medicines is as follows:
    • The retail price of the product = Price to Stockist (PTS) X {ðŸ + [ð‘»ð‘´/(ðŸðŸŽðŸŽâˆ’ð‘»ð‘´)]},

      • where TM = Trade Margin not exceeding 30 and PTS = PTS for the month of received

Maximum Retail Price (MRP)

For the scheduled formulations, the maximum retail price can be fixed by the manufacturers. The manufacturer should set the price considering the maximum price informed by the government, adding the local taxes whenever it is appropriate. For a new drug, the maximum retail price can be fixed by the manufacturer, considering the retail price given by the government and local taxes that can be added wherever it is needed.

The manufacturer of the scheduled formulation should display the MRP mentioned in the Official Gazette stating “Maximum Retail Price†and ‘inclusive of taxes.’ The price list can be issued to the Government, dealers, and State Drugs Controller if required through Form V.

Maximum Retail Price of a Pack

The maximum retail price of a pack can be determined in the same way as the maximum price. For the whole pack, the maximum price is fixed by multiplying the maximum price with the quantity in the pack. If the dosage is not available under the Schedule one, then the smallest pack size of medicine as in the Drugs and Cosmetics Act, 1940, can be taken for fixing the maximum price or the retail price of the non-scheduled drug.

Price of Formulations for New Manufacturer

A manufacturer is free to fix the cost of the drug that is to be launched. The price should be below or equal to the fixed maximum price of the scheduled formulation.

Price of Formulations for Existing Manufacturer

The prices of all the existing drugs shall be revised, but it should not exceed the maximum price. All the drugs (branded or generic) that are sold below the maximum price can be sold at the same rate by the manufacturer.

Revision of the Maximum Price

  • The Government revises the scheduled formulations’ maximum price on or before the 1st of April every year. The revision of the price takes place as per the annual Wholesale Price Index (WPI).
  • The manufacturer can increase the MRP after consulting the previous years’ WPI. No Government approval is needed for increasing the price.
  • After revising the MRP, the manufacturer should convey it to the Government through Form II in physical or electronic form within 15 days of revising the price.
  • If the manufacturer does not notify the government, then he is liable to pay over and above the previous MRP with interest from the date of revising the price.

Updation of the List of Scheduled Formulation

A decision to amend the schedule one can be made by the Government of India not less than 60 days of receiving the communication from the Ministry of Health and Family Welfare. The revised maximum price will be notified, and the price will be fixed 60 days after the notification.

Revision of Maximum Price of Moving Annual Turnover (MAT)

The revision of the maximum price on MAT will be done

  • When the Ministry of Health and Family Welfare revises the National list of Essential Medicines.
  • Five years after fixing the maximum price.

Monitoring the Non-Scheduled Formulations Prices

The Government monitors the MRP of the non-scheduled formulations. The manufacturer can exceed the MRP only by 10%. If the price exceeds 10% of MRP, then the price should decrease by 10% of MRP for the next 12 months. If a manufacturer intends to discontinue from any schedule formulation, then he should notify the government through Form IV in Schedule II at least 6 months prior to discontinuation. The Government can ask the manufacturer to continue for a period of one year. The Government should notify this within 60 days from the date of intimation received from the manufacturer. The manufacturer of the non-scheduled formulation should display the MRP mentioned in the Official Gazette stating “Maximum Retail Price†and ‘inclusive of taxes.’

Rules for the Dealer

  • The dealer is not allowed to sell the drugs in loose quantities at a high price.
  • The dealer cannot refuse to sell any drugs to the customer.

Maintenance of Records

A record of the sale should be maintained by every manufacturer, and the Government has the power to check the record at any time. The Government has the power to search and seize anything if the manufacturer is found guilty.

Non-applicability of the Order

The order is not applicable to:

  • The manufacturer is producing new drugs under the Indian Patent Act if developed through R&D (Research and Development). The drug is not applicable to the order for a period of 5 years from the commencement of the drug.
  • The manufacturer is producing new drugs developed through the new processes by R&D (Research and Development). Then the drug is not applicable to the order for a period of 5 years from the commencement of the drug.
  • The manufacturer is producing a new drug with a new delivery system through R&D (Research and Development). The drug is not applicable to the order for a period of 5 years from the commencement of the drug.
  • Drugs that are for treating orphan diseases.

The latest notification on Drug Policy can be accessed below:


The post Drug Price Control Order appeared first on IndiaFilings – Learning Centre .


Custom Clearance of Imported Goods

Custom Clearance of Imported Goods

 As per the Customs Act, all goods imported into India will have to pass through the procedure of customs for the proper assessment, appraisal, examination, and evaluation. This process helps the custom authorities to charge the proper tax and also check the goods against the illegal import. In this article, we have a look at the procedure for clearance of imported goods in detail.

Conditions for Clearance of Imported Goods

  • Every importer is required to file the bill of entry in the form as prescribed by regulations.
  • Every importer will have to obtain an Importer-Export Code (IEC) number before filing a bill of entry from the Director-General of Foreign Trade.
  • The information given has to be certified by the importer in the form of a declaration at the bill of entry while filing the bill of entry.
  • The importer can submit a document in an electronic format containing all the relevant information to the service center.
  • A checklist should be generated for verification of data by the importer, and after verification, the data filed by the service center operator generates a bill of entry number.
  • The importer is required to sign on the final document before customs clearance.
  • The importer needs to get the bill of entry, which will be forwarded to the appraising division of the custom-house for assessment function, payment of duty, etc.
  • After registration, the bill of entry is forwarded electronically or manually to the concerned appraising group in the custom-house.

Assessment under the manual mode

  • The assessing offer will determine the duty payable on imported goods and also verify whether there are any prohibitions or restrictions on imported goods. Assessment of duty involves the classification of the imported goods as per the Customs Tariff Act and determining the duty liability.
  • Also, this assessment involves the correct determination of value where the goods are assessable. For this process, the assessing officer will require invoice and other declarations submitted along with the bill of entry in support of the said value. The determination of value is done as per the provisions under the Customs Act, and the assessing officer takes the contemporaneous values and other information on valuation available in the custom-house.
  • The appraising officer can require a detailed examination of the nature of the goods where the description of the goods mentioned in the document is not satisfactory.
  • Upon receipt of the examination report, the appraising officer assesses the bill of entry, indicating the valuation, final classification, and various duties. Therefore, the bill of entry goes to Assistant Commissioner for confirmation depending upon certain value limits and calculates the duty amount.
  • After the assessment and calculation of duty, the importer will have to deposit the duty with the respective banks. As the goods have already been examined for finalization of valuation, no further examination by the appraising staff is required at the delivery, and the goods can be delivered after accepting relevant orders and payment of dues, if any.

EDI Assessment

Under the EDI Assessment of a bill of entry, the cargo declaration is transferred to the assessing officer and assessed by him. Apart from that, the EDI system supplies information for calculation of duty, and it automatically applies the relevant rate of exchange while calculating.

After the assessment, a copy of the assessed bill of entry and other supporting documents are examined at the time of examination of goods. Further, this system calculates duty, which is paid by the importer.

Examination of goods

All goods imported are required to be examined for verification of correctness of description given in the bill of entry. However, part of the consignment is selected randomly and examined. Also, the goods will be examined prior to assessment in case the importer does not have complete information at the time of import or if the Customs Appraiser or Assistant Commissioner requires the goods are to be examined before assessment. The appraiser examines the goods as per the examination order and records his approval.

Amendment of Bill of Entry

On submission of documents, amendments to the bill of entry are carried out with the approval of the deputy or assistant commissioner. The request for amendment can be submitted with the supporting documents. Upon proof being submitted to the deputy or assistant commissioner amendment in the bill of entry will be allowed after the goods have been cleared.

Prior Entry Bill of Entry

For faster clearance of goods, filing of the bill of entry prior to the arrival of goods can be performed as per the section 46 of the customs Act. This bill of entry is valid for the aircraft carrying the goods arrives in one month from the presentation of the bill of entry. The importer is required to file five copies of the bill of entry, and the last copy is known as advance, noting copy. The importer has to identify that the aircraft is due within 30 days and present the bill of entry for final as soon as the Import General Manifest (IGM) is filed.

Bill of Entry for Warehousing

The separate form of a bill of entry is used for clearance of goods, and all documents are required to be furnished with a bill of entry for warehousing. Also, the bill of entry for warehousing has to be filed, and this bill of entry is assessed, and duty payable is determined. However, such duty is not payable at the time of warehousing of the goods; the purpose of assessing the goods is to secure the duty in case the goods do not reach the warehouse. The duty paid at the time of ex-bond clearance of goods from where the Ex-Bond bill of entry is filed. The rate of duty for imported goods cleared from a warehouse is the rate that is in force on the date of filing the Ex-Bond Bill of Entry.

The post Custom Clearance of Imported Goods appeared first on IndiaFilings – Learning Centre .


AO Code

AO Code

AO Code stands for Assessing Officer code under whose jurisdiction that the applicant Income Tax Return (ITR) will fall. This AO code has to be mentioned in the form when applying for a new PAN card. AO code is necessary for Income Tax assessment as it denotes the tax laws applicable for a person and under whose jurisdiction will the assessment be covered. In this article, we look at the AO Code in detail.

Components of AO Code

Assessing Officer is a person who is appointed by the Income Tax Department for the purpose of assessing the taxation of the people. Identification of these assessing officers done with the help of AO codes. Also, there is a table designed in Form 49A where AO codes can be identified. AO code consists of the four components, as mentioned below:

Area Code: Area Code helps in the identification of the company or individual.

AO Type: AO type helps the Income-tax department for the identification of the category of PAN cardholder, company, individual or service personnel or any person who is not the citizen of India.

Range Type: Range type is based on to find the permanent address of PAN Cardholder. They are being assigned with a Range type which helps to identify the circle or ward that they reside.

AO Number: AO number is a numerical value which is published on the website of NSDL and is the last element of AO code.

Selection Criteria of AO code

Before making the selection of AO code, that one needs to understand the selection criteria based on which the AO code can be selected as given below:

  • In case of Individuals: If any individual applies for a new PAN card whose source of income from a salary or business then in such case, AO code will be either on the residential address or business address.
  • In the case of Non-Individuals: Individuals refer to Trusts, Hindu Undivided Family (HUFs), Government bodies, limited liability partnership (LLP) , companies etc. In such cases, the organisation will consider the business address for determining their AO code.

Different Types of AO code

There are four different types of AO codes designated for the identification of the company or individual. For the correct identification of AO coed, the National Securities Depository Limited (NSDL) has published the list of AO codes which is being separated into the following categories:

International Taxation: These are AO codes for the person who is not a resident of India and applying for a PAN card or any company not incorporated in India is required to select this AO code.

Non-International Taxation (Mumbai): These are AO code for the people and companies that are residing in Mumbai or registered in Mumbai.

Non-International Taxation (Outside Mumbai): These are AO code for those individuals or companies that are based in India and outside of Mumbai.

Defense Personnel: These are AO code for the identification of an individual who belongs to the Air Force or Indian Army. Under the category, there are only two forms of AO codes are meant for the Air Force and others for the Indian Army.

Check AO code for PAN

To check AO code when applying for PAN card, follow the steps as specified below:

Step 1: Vist National Securities Depository Limited (NSDL) portal to search the AO code.

Step 2: Now, search for your city from the appropriate list of AO codes.

AO Code- AO Code search for PAN

Step 3: Once you identify the city, check for the section “Additional Description” to know if the selected area is a part of that AO code.

AO Code: Search on City

Step 4: One needs to check that the AO code applies to you in terms of company, individual or international entity.

Step 5: Once you would able to make the selection of right AO code, make a note of AO type, Range type, Area code, and AO number.

Step 6: After selecting the appropriate AO code, click on the Submit button.

Know your Jurisdictional Assessing Officer

To know the Assessing Officer under whose jurisdiction income tax returns fall, follow the steps given below:


Step 1: The applicant has to visit the home page of the income tax filing website to view the income tax ward or circle.

Step 2: Log in to the e-filing tax account by entering PAN details and registered mobile number.

AO Code: Know Your Jurisdiction

Step 3: On entering the details correctly, click on the “Submit” button to receive “One Time Password” (OTP) on the registered mobile number.

Step 4: Now, enter the OTP and validate the process to view your jurisdiction.

AO Code: View your jurisdiction

Step 5: Now, the applicant will be directed to a page “Know your Jurisdictional Assessing Officer (AO) where you check your area code, AO type, Range Code, AO number, jurisdiction’s address, and the email ID.

AO Code: Jurisdictional AO details


Step 1: Revisit the same portal and login with your e-filling tax account by entering PAN details, password and captcha code.

AO Code: Login Details

Step 2: After logging in to the portal, click on “Profile Settings” tab and select “My profile” option where you will find contact details. Further click on the “PAN Details” tab.

AO Code: Profile Settings

Step 3: After clicking the PAN details tab from that, you can view the “Jurisdiction Details” and also can view your income tax ward or circle.

AO Code: View Jurisdiction Details

The post AO Code appeared first on IndiaFilings – Learning Centre .


Paperless Licensing Process for Petroleum Road Tankers

Paperless Licensing Process for Petroleum Road Tankers

The DPIIT launched the paperless licensing process to improve ease of doing business. The paperless licensing process applies to all the road tankers who transports petroleum. The procedure shall reduce the waiting period and paperwork through multiple officials. The digital licensing strengthens the ‘Digital India’ and green India initiative. The license can be applied through the official website of the Petroleum and Explosives Safety Organisation (PESO). For grant of a license, the applicant shall process the application through online. The application process must include all the necessary documents, applications, and processing fees. All the processes initiated by the officials for the application process shall be informed through e-mail or SMS.


  • Increase transparency through digitalization in the application process
  • Provide a simple mechanism to reduce processing time and move towards the paperless application process. Reduce the print of the license.
  • Update the up to date process of the application
  • To automate the application and verification process for the benefit of the petroleum road tanker owners

Application Process

Step 1: To apply for the license access the PESO application login page

Step 2: Click on ‘Apply Online’ > Click on ‘ Petroleum, Gas Cylinders, SMPV (U) Rules Application Login

PESO official page

Step 3: If the not registered with PESO, click on ‘New User’

PESO Login page

Step 4: Select ‘New License’. On the applicant type, select “company, individual, partnership firm, society or government.” Fill all the other licensee details and click on ‘Save.’

PESO- New-User
PESO New User

Step 5: Login into the PESO portal using the login ID and password

Step 6: Click on ‘New Application’ for applying the new license to transport Class A and B Petroleum . The application is termed as Form VII.

Step 7: Select the office type and office

Step 8: Fill all the details as per the RC Book address

Step 9: Fill all the vehicle and parking details including engine and chassis number

Step 10: Fill all the details of capacity and validity. The details must include CCE’s approval number, tank manufacturing date, and the number of years license is required. If the license capacity of the tanker is less than 25KL, the applicant must choose less than 5KL for each compartment.

Step 11: After filling all the details, upload the drawing details and documents. The document should be uploaded in PDF format only. The size of the documents should not be more than 512 kb. The uploaded documents can be verified for editing. Click ‘Save’ after filling all the details.

Step 12: After filling all the details, print the application form and sign at the required pages. The form shall then be uploaded along with the signature of the applicant

Step 13: Click on the ‘Print Online Application’

Step 14: Add the DocKey and click on ‘Save.’

Step 15: To view the letter and license being granted, click on the list of licenses and click ‘View.’

Step 16: In the case of discrepancy compliance, do not apply it as ‘New Application.’

Revalidation Process

Step 1: Open the official website of PESO

Step 2: Click on ‘Apply Online’ > Click on ‘ Petroleum, Gas Cylinders, SMPV (U) Rules Application Login


Step 3: Click on FPS Revalidation New User.


Step 4: Fill all the details with valid credentials. Upload the company’s logo. Enter a user name and password for login purposes. Click ‘Save.’

FPS Registration

Step 5: After successful registration, the User shall receive an email with an activation link. Click on the link to log into the website.

Step 6: Click on Cylinder Manufacturer (Revalidation)

Step 7: The applicant shall provide all the necessary details along with rules, purpose, and Form Number. Click on ‘Save’ after furnishing all the details.

Step 8: Click on ‘Drawing Details > Click on ‘Add drawing details’

Step 9: Fill with relevant details such as CCE’s Approval Number, Type of the cylinder, subcategory, and others. Click on ‘Save’ after providing all the details. The user shall be provided with an option to edit for further details.

Step 10: Click on ‘Organisational Setup Manpower Details’ > Click on ‘Add Organisational Setup Manpower Details.’

Step 11: Fill with relevant details and click ‘Save.’ The user shall be provided with an option to edit for further details.

Step 12: Click on ‘Cylinder Manufacturing Approval Details (Under BIS Marking Scheme) > Click on ‘Add Cylinder Manufacturing Approval Details’ (Under BIS Marking Scheme).

Step 13: Provide BIS License Number and BIS Name. The user shall be provided with an option to edit for further details.

Step 14: Click on ‘Third Party Inspection Agency Details’ > Click on ‘Add Third Party Inspection Agency Details.’ Click on ‘Save.’

Step 15: After filling all the details, click on ‘Save and Submit.’

Step 16: Click on ‘Print’ for filing reference. For application status, the applicant can click on ‘Application Status’ at the bottom of the page.

Renewal Payment for Licenses

The renewal payment can be made through DD or online.

Step 1: Open the official website of PESO

Step 2: Click on ‘Apply Online’ > Click on ‘ Petroleum, Gas Cylinders, SMPV (U) Rules Application Login


Step 3: Log into the official website of PESO


Step 4: Click on Portfolio > Provide DocKey > Click ‘Save’

Step 5: Click on Subsequent Application (Portfolio)

Step 6:  Under Transaction, choose Renewal

Step 7: Select the office and click ‘Save.’

Step 8: Click on ‘Add Payment Details’

Step 9: Fill all the details with relevant information > click ‘Submit’ > Click ‘Save.’

The post Paperless Licensing Process for Petroleum Road Tankers appeared first on IndiaFilings – Learning Centre .


Older posts


Theme by Anders NorenUp ↑