Page 1 of 12

PUBLICATION VOL NO 91 RNM MONTHLY AUGUST 2016

2016

EDITORIAL TEAM

R N MARWAH amp C O LLP

892016

R N MARWAH amp CO LLP

WWWRNMIN

RNM ALERT

A MONTHLY NEWSLETTER

Page 2 of 12

Nkdckjksj k j vcjjvjasvjjjjavjvn

Welcome Readers

RNM ALERT

AUDIT amp

ASSURANCE

TAX amp

REGULATORY

CORPORATE

amp LEGAL

CORPORATE

FINANCE

Content

02 WELCOME

Message by our

Managing Partner

03 DIRECT TAX Direct tax case laws 06 INDIRECT TAX Service tax cases 08 CORPORATE LEGAL Law updates 09 CORPORATE FINANCE Transactions 12 TAX DIARY

Mark Calendar

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

The Parliament haxs passed

a crucial reform which has been pending since long in the form of the Real Estate (Regulation and Development) Bill The Bill which protects consumers should instill confidence in Investors in the hitherto fragmented real estate market of India with the establishment of a Real Estate Regulatory Authority (RERA) to bring

accountability of the

Dear Readers The pace of the Indian Economy is slowly picking up and the Stock Market which is at 18 month high is reflective of this mood The ratification of the GST Bill by the requisite number of State Legislative Assembly‟s now paves the way for the Presidential assent to make into law the GST reform This is adding to the bonhomie internationally for India The GDP grew in the first quarter of this fiscal year by 71 over the equivalent quarter last year The Institute of Chartered Accountants of India (ICAI) has in the month of August 2016 issued two important Implementation Guide‟s The first is on the Audit of Internal Financial Control over Financial Reporting with specific reference to Smaller and less complex Companies and the second on Auditor‟s Report under Indian Accounting Standards (Ind-AS) for Transition Phase Both of them were much needed to avoid the hardships being faced by India Inc in implementation of these new regulations Team RNM only hopes that in future such steps are taken well in advance by anticipating the hardship thru better discussion and planning with stake holders concerned In addition to the Treaty re-negotiation successfully done with Mauritius which was earlier reported in the RNM Alert of May 2016 (Issue No 88) the Indian government has also renegotiated the Treaty with Cyprus which has obtained Cabinet nod in August 2016 The new Treaty has sourced based taxation as against residence based taxation in the old Treaty The new treaty will also lead to removal of Cyprus from the Indian government blacklist as a bdquoNotified Jurisdiction‟ on which it has been since November 2013 The new Treaty similar to the Mauritius treaty has a grandfathering clause which provides that old rules apply to existing cases and new rules to future ones Lastly I would like to thank all our readers for the active response feedback and likes Team RNM has received on our Social Media initiatives on Twitter LinkedIn and Facebook Kind Regards CA UN Marwah

For amp on Behalf of RNM Alert Editorial Team

Page 2 of 12

Nkdckjksj k j vcjjvjasvjjjjavjvn

Welcome Readers

RNM ALERT

AUDIT amp

ASSURANCE

TAX amp

REGULATORY

CORPORATE

amp LEGAL

CORPORATE

FINANCE

Content

02 WELCOME

Message by our

Managing Partner

03 DIRECT TAX Direct tax case laws 06 INDIRECT TAX Service tax cases 08 CORPORATE LEGAL Law updates 09 CORPORATE FINANCE Transactions 12 TAX DIARY

Mark Calendar

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

The Parliament haxs passed

a crucial reform which has been pending since long in the form of the Real Estate (Regulation and Development) Bill The Bill which protects consumers should instill confidence in Investors in the hitherto fragmented real estate market of India with the establishment of a Real Estate Regulatory Authority (RERA) to bring

accountability of the

Dear Readers The pace of the Indian Economy is slowly picking up and the Stock Market which is at 18 month high is reflective of this mood The ratification of the GST Bill by the requisite number of State Legislative Assembly‟s now paves the way for the Presidential assent to make into law the GST reform This is adding to the bonhomie internationally for India The GDP grew in the first quarter of this fiscal year by 71 over the equivalent quarter last year The Institute of Chartered Accountants of India (ICAI) has in the month of August 2016 issued two important Implementation Guide‟s The first is on the Audit of Internal Financial Control over Financial Reporting with specific reference to Smaller and less complex Companies and the second on Auditor‟s Report under Indian Accounting Standards (Ind-AS) for Transition Phase Both of them were much needed to avoid the hardships being faced by India Inc in implementation of these new regulations Team RNM only hopes that in future such steps are taken well in advance by anticipating the hardship thru better discussion and planning with stake holders concerned In addition to the Treaty re-negotiation successfully done with Mauritius which was earlier reported in the RNM Alert of May 2016 (Issue No 88) the Indian government has also renegotiated the Treaty with Cyprus which has obtained Cabinet nod in August 2016 The new Treaty has sourced based taxation as against residence based taxation in the old Treaty The new treaty will also lead to removal of Cyprus from the Indian government blacklist as a bdquoNotified Jurisdiction‟ on which it has been since November 2013 The new Treaty similar to the Mauritius treaty has a grandfathering clause which provides that old rules apply to existing cases and new rules to future ones Lastly I would like to thank all our readers for the active response feedback and likes Team RNM has received on our Social Media initiatives on Twitter LinkedIn and Facebook Kind Regards CA UN Marwah

For amp on Behalf of RNM Alert Editorial Team

Page 3 of 12

DIRECT TAX CASE LAWS Income Accrue or Arise in India Sec 9 - Consideration received for sale of

computer software programme in CD Rom is not assessable as ldquoroyaltyrdquo The retrospective amendment in Explanation 4 to section 9(1)(vi) to tax such receipts as royalty has no application to DTAA if the definition of the term ldquoroyaltyrdquo in the DTAA has remained unchanged ADIT V Ms Baan Global B V ITA No 7048Mum2010 (Mum-Trib)

Expenses related to Exempt Income Sec 14A ndash The AO must examine the accounts closely and determine if at all any expenditure could be ascribed to the tax exempt dividendinterest earned by the assessee If the tax exempted income was earned without the interference of any employee the question of attributing any expenditure cannot arise at all Pradeep Khanna V ACIT ITA 9532015 (Delhi-HC)

14A - S 14A is applicable even where the motive of the assessee in acquiring the shares is to obtain controlling interest in a company and not Sec to earn dividends MS United Breweries Ltd V DCIT ITA NO4192009 (Kar-HC)

Profit amp Gain form Business and Profession

Sec 28 ndash Income from letting of property on

rent by an assessee engaged in the business of letting is assessable as business profits us 28 and not as Income from house property us 22 Ms Rayala Corporation Pvt Ltd V ACIT Civil Appeal No 6437 of 2016 (SC)

Sec 37 - Compensation paid by assessee to State Pollution Control Board for failure to install pollution control equipment at factory premises within stipulated time would be allowable as business expenditure it was not a penalty Shyam Sel Ltd V DCIT [2016] 72 taxmanncom 105 (Calcutta-HC)

Sec 37 - Foreign exchange loss is not a notional or speculation loss and is allowable as a deduction CBDTs Instruction No 3 of 2010 which deals with foreign exchange derivative transactions (forward contracts) is not applicable to cases of losses in dealings with foreign exchange CIT V Ms Vinergy International Pvt Ltd INCOME TAX APPEAL NO 376 OF 2014 (Bom-HC)

Sec 43B - Issue of debentures to fund the

interest liability does not amount to ldquoactual paymentrdquo of the interest so as to qualify for deduction under Explanation 3C to Section 43-B CIT V MM Aqua Technologies Ltd REV PET3082015 IN ITA 1102005 (Delhi-HC)

DIRECT TAX

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

Page 4 of 12

Sec 43B ndash Service-tax billed on rendering of

services is not includible as trading receipts No disallowance us 43B can be made for the unpaid service-tax liability which is not claimed as a deduction CIT V Knight Frank (India) Pvt Ltd INCOME TAX APPEAL NO 247 OF 2014 (Bom-HC)

Capital Gain

Sec 2(14) - Capital gains addition in respect of

sale of various lands held by assessee an individual engaged in buyingselling of immovable properties was to be upheld as land was converted from agricultural to non-agricultural prior to sale with sole purpose and intent to sell land for industrial purpose and period of holding was also very short land in question did not fall under exclusion clause (iii) to section 2(14) DCIT V B Sudhakar Pai [2016] 71 taxmanncom 318 (Bangalore - Trib)

Sec 50C - Land purchased by a builder with the

knowledge that there are encumbrances on it and development is not feasible is a ldquocapital assetrdquo and not ldquostock-in-traderdquo The gains on transfer of such land are assessable as capital gains and not as business profits S 50C applies to development agreements if the effect of the development agreement read with the conveyance deed is that the entire land with ownership rights are transferred ACIT V Ms Dattani Development ITA No5075Mum2010 (Mum-Trib)

Sec 50C - Valuation is a matter of estimation

and some degree of difference is bound to be there If the difference between the stamp duty valuation and the declared sale consideration is less than 10 addition us 50C should not be made Smt Sita Bai Khetan V ITO ITA No 826JP2013 (Jaipur-Trib)

Sec 54 - The date of purchase of the new residential house is the date when the assessee receives possession and not the date of the agreement of purchase Bastimal K Jain V ITO ITA No2896Mum2014 (Mum-Trib)

Sec 54F - A flat shown as residential house in

municipal records but actually used as office is not a residential house for sec 54F purposes For the purposes of section 54F the question whether assessee owns more than one residential house other than the new asset is to be determined based on actual user of the house and not what is shown in municipal records Sanjeev Puri V DCIT [2016] 72 taxmanncom 147 (Delhi - Trib)

Sec 54F - If the assessee has made full payment

to the builder for purchase construction of a new residential house but is not able to get the title of the flat registered in his name or is unable to get the possession of the flat within the prescribed period due to fault of the builder the assessee cannot be denied deduction us 54F

Mr Rajeev B Shah V ITO ITA No262Mum2015 (Mum-Trib)

Cash Credit

Sec 68 - Where assessee claimed that during

year he had received a gift of Rs 35 lakhs from his brother and Assessing Officer invoking provisions of section 68 added gift amount to assessees income since assessee failed to establish creditworthiness of donor and genuineness of transaction impugned addition was justified E Ummer Bava V CIT [2016] 72 taxmanncom 123 (Kerala-HC)

Sec 69A - Where there was neither trace of

creditor nor any document evidencing loan terms or any special relationship between parties on account whereof huge loan of Rs 30

Page 5 of 12

lakh could be given without demand of any interest such loan recorded in assessees books of account was to be added to income of assessee under section 69A Namdev Arora V CIT [2016] 72 taxmanncom 124 (Punjab amp Haryana-HC)

Set off and Carry forward amp Set off Sec 72 - When a scheme of amalgamation had been sanctioned by High Court same would be from appointment date claim of carried forward unabsorbed depreciation and loss of amalgamated company would be allowed from appointed date IRM Ltd V DCIT [2016] 72 taxmanncom 288 (Gujarat-HC)

Transfer Pricing Sec 92CA - The TPO is required to be consistent in matters relating to selection of comparables If a comparable has been included or rejected in an earlier year he is not entitled to take a different view in a later year if there is no change in circumstances Hyundai Rotem Company V ACIT IT(TP) No1722Del2015 (Delhi-Trib)

Assessment Proceedings amp Appeals

Sec 132 ndash Mere voluntary disclosure of undisclosed income by assessee cannot form basis of addition if no evidence is detected in search Fact that retraction of statement is late is irrelevant CBDT Circular No FNo28622003-IT (In) dated 10032003 bars addition on the basis of confession Chetnaben J Shah Legal Heir of jagdish chandra K V ITO TAX APPEAL NO 1437 of 2007 (Guj-HC)

Sec 147 - S 148 reopening notice issued to a private trust which received contributions of Rs 658 crore on the ground that it has not obtained

a PAN or filed a return of income is not valid The AO cannot assume all receipts are income and issue the reopening notice General Electoral Trust V ITO Writ Petition No1155 of 2016 (Bom-HC)

Sec 249 - An appeal wrongly filed before the AO and not CIT(A) is an unintentional lapse of the assessee The AO ought to have returned the appeal to enable the assessee to take corrective steps The likelihood of error is inherent in human nature The power of condonation is in view of human fallibility and must be exercised in cases of bona fide lapses Prashanth Projects Ltd V DCIT INCOME TAX APPEAL NO 192 OF 2014 (Bom-HC)

Penalty Proceedings Sec 275 - Penalty proceedings for contravention

of Sections 269SS amp 269T are not related to the assessment proceeding but are independent of it Therefore the completion of appellate proceedings arising out of the assessment proceedings has no relevance Consequently the limitation prescribed by s 275(1)(a) does not apply The limitation period prescribed in s 275(1)(c) applies to such penalty proceedings CIT V Hissaria BrothersHanumangarh Jn CIVIL APPEAL NO5254 OF 2008 (SC)

Page 6 of 12

GOODS AND SERVICES TAX (GST) UPDATE

GST exemption for traders having turnover up to 25 lakhs Revenue Secretary

The Revenue Secretary HasmukhAdhia said that small traders having annual turnover of up to Rs 20-25 lakh will be exempted from GST and the Centre and the states are likely to agree to this limit

Source wwwbusinesstodayin

GST bill can now go for Presidential assent ArunJaitley

Government will seek Presidential assent for the landmark Constitution amendment bill for GST as 16 states have ratified the legislation Finance Minister ArunJaitley said on Thursday With Odisha approving the constitution amendment at a special assembly session on Thursday 50 per cent of the states have ratified the GST bill

httpindianexpresscom [02-09-2016]

Rajasthan Puducherry ratify GST Bill The Rajasthan and Puducherry Assemblies on Friday unanimously ratified the Constitution Amendment Bill on Goods and Services Tax (GST) passed by Parliament Speaking on the resolution Chief Minister VasundharaRaje said

GST will have a very positive impact and states including Rajasthan will get advantages

- wwwbusiness-standardcom[03-09-2016]

GST to Boost Indias Strong Growth IMF Indian economy is likely to continue to grow strongly the International Monetary Fund has said ahead of the G20 meet in China crediting its latest assessment to support from private consumption and saying that the goods and services tax will provide a further boost when it is rolled out ldquoIn India high-frequency data suggest continuing strong growth underpinned by private consumptionldquo the IMF said in a surveillance note released on Thursday capturing `Global prospects and policy challenges

wwweconomictimesindiatimescom [02-09-2016]

SERVICE TAX CASE LAWS

Central Govt has power to make rules to order lapsing of accumulated credit

In view of section 37(2)(xxviii) of Central Excise Act 1944 Central Government has rule-making

INDIRECT TAX

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

Page 5 of 12

lakh could be given without demand of any interest such loan recorded in assessees books of account was to be added to income of assessee under section 69A Namdev Arora V CIT [2016] 72 taxmanncom 124 (Punjab amp Haryana-HC)

Set off and Carry forward amp Set off Sec 72 - When a scheme of amalgamation had been sanctioned by High Court same would be from appointment date claim of carried forward unabsorbed depreciation and loss of amalgamated company would be allowed from appointed date IRM Ltd V DCIT [2016] 72 taxmanncom 288 (Gujarat-HC)

Transfer Pricing Sec 92CA - The TPO is required to be consistent in matters relating to selection of comparables If a comparable has been included or rejected in an earlier year he is not entitled to take a different view in a later year if there is no change in circumstances Hyundai Rotem Company V ACIT IT(TP) No1722Del2015 (Delhi-Trib)

Assessment Proceedings amp Appeals

Sec 132 ndash Mere voluntary disclosure of undisclosed income by assessee cannot form basis of addition if no evidence is detected in search Fact that retraction of statement is late is irrelevant CBDT Circular No FNo28622003-IT (In) dated 10032003 bars addition on the basis of confession Chetnaben J Shah Legal Heir of jagdish chandra K V ITO TAX APPEAL NO 1437 of 2007 (Guj-HC)

Sec 147 - S 148 reopening notice issued to a private trust which received contributions of Rs 658 crore on the ground that it has not obtained

a PAN or filed a return of income is not valid The AO cannot assume all receipts are income and issue the reopening notice General Electoral Trust V ITO Writ Petition No1155 of 2016 (Bom-HC)

Sec 249 - An appeal wrongly filed before the AO and not CIT(A) is an unintentional lapse of the assessee The AO ought to have returned the appeal to enable the assessee to take corrective steps The likelihood of error is inherent in human nature The power of condonation is in view of human fallibility and must be exercised in cases of bona fide lapses Prashanth Projects Ltd V DCIT INCOME TAX APPEAL NO 192 OF 2014 (Bom-HC)

Penalty Proceedings Sec 275 - Penalty proceedings for contravention

of Sections 269SS amp 269T are not related to the assessment proceeding but are independent of it Therefore the completion of appellate proceedings arising out of the assessment proceedings has no relevance Consequently the limitation prescribed by s 275(1)(a) does not apply The limitation period prescribed in s 275(1)(c) applies to such penalty proceedings CIT V Hissaria BrothersHanumangarh Jn CIVIL APPEAL NO5254 OF 2008 (SC)

Page 6 of 12

GOODS AND SERVICES TAX (GST) UPDATE

GST exemption for traders having turnover up to 25 lakhs Revenue Secretary

The Revenue Secretary HasmukhAdhia said that small traders having annual turnover of up to Rs 20-25 lakh will be exempted from GST and the Centre and the states are likely to agree to this limit

Source wwwbusinesstodayin

GST bill can now go for Presidential assent ArunJaitley

Government will seek Presidential assent for the landmark Constitution amendment bill for GST as 16 states have ratified the legislation Finance Minister ArunJaitley said on Thursday With Odisha approving the constitution amendment at a special assembly session on Thursday 50 per cent of the states have ratified the GST bill

httpindianexpresscom [02-09-2016]

Rajasthan Puducherry ratify GST Bill The Rajasthan and Puducherry Assemblies on Friday unanimously ratified the Constitution Amendment Bill on Goods and Services Tax (GST) passed by Parliament Speaking on the resolution Chief Minister VasundharaRaje said

GST will have a very positive impact and states including Rajasthan will get advantages

- wwwbusiness-standardcom[03-09-2016]

GST to Boost Indias Strong Growth IMF Indian economy is likely to continue to grow strongly the International Monetary Fund has said ahead of the G20 meet in China crediting its latest assessment to support from private consumption and saying that the goods and services tax will provide a further boost when it is rolled out ldquoIn India high-frequency data suggest continuing strong growth underpinned by private consumptionldquo the IMF said in a surveillance note released on Thursday capturing `Global prospects and policy challenges

wwweconomictimesindiatimescom [02-09-2016]

SERVICE TAX CASE LAWS

Central Govt has power to make rules to order lapsing of accumulated credit

In view of section 37(2)(xxviii) of Central Excise Act 1944 Central Government has rule-making

INDIRECT TAX

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

Page 6 of 12

GOODS AND SERVICES TAX (GST) UPDATE

GST exemption for traders having turnover up to 25 lakhs Revenue Secretary

The Revenue Secretary HasmukhAdhia said that small traders having annual turnover of up to Rs 20-25 lakh will be exempted from GST and the Centre and the states are likely to agree to this limit

Source wwwbusinesstodayin

GST bill can now go for Presidential assent ArunJaitley

Government will seek Presidential assent for the landmark Constitution amendment bill for GST as 16 states have ratified the legislation Finance Minister ArunJaitley said on Thursday With Odisha approving the constitution amendment at a special assembly session on Thursday 50 per cent of the states have ratified the GST bill

httpindianexpresscom [02-09-2016]

Rajasthan Puducherry ratify GST Bill The Rajasthan and Puducherry Assemblies on Friday unanimously ratified the Constitution Amendment Bill on Goods and Services Tax (GST) passed by Parliament Speaking on the resolution Chief Minister VasundharaRaje said

GST will have a very positive impact and states including Rajasthan will get advantages

- wwwbusiness-standardcom[03-09-2016]

GST to Boost Indias Strong Growth IMF Indian economy is likely to continue to grow strongly the International Monetary Fund has said ahead of the G20 meet in China crediting its latest assessment to support from private consumption and saying that the goods and services tax will provide a further boost when it is rolled out ldquoIn India high-frequency data suggest continuing strong growth underpinned by private consumptionldquo the IMF said in a surveillance note released on Thursday capturing `Global prospects and policy challenges

wwweconomictimesindiatimescom [02-09-2016]

SERVICE TAX CASE LAWS

Central Govt has power to make rules to order lapsing of accumulated credit

In view of section 37(2)(xxviii) of Central Excise Act 1944 Central Government has rule-making

INDIRECT TAX

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

Page 7 of 12

power to make rules for lapsing of accumulated credit

Rule 57F(4A) of Central Excise Rules 1944 (as retrospectively validated vide sections 131 and 132 of Finance Act 1994) was a part of scheme for rationalization of inverted-duty structure to ensure that accumulated credit does not lead to reduced collection of revenues hence said rule and validation sections providing for lapsing of credit were rationalreasonable

SML Isuzu LtdvUnion of India [2016] 72 taxmanncom 107 (Delhi)

Credit cant be denied merely due to discrepancies in transport documents

If inter-state movement of inputs is recognized by sales-tax authorities at check-posts then merely due to discrepancies in transport documentsdates department cannot deny credit alleging that inputs were never received

S Pal Enterprises (P) LtdvCommissioner of Central Excise amp Service Tax Alwar [2016] 72 taxmanncom 172 (New Delhi - CESTAT)

Exporters can file CenvatRefund Claim Within 1 year from Last Date of Quarter in Which Proceeds Realized Quarterly refund claim under rule 5 of the Cenvat Credit Rules 2004 can be filed within 1

year last date of quarter in which Foreign Inward Remittance Certificates (FIRCs) were received

Commissioner of Central Excise-IvSG Analytics (P) Ltd [2016] 72 taxmanncom 180 (Mumbai - CESTAT)

NOTIFICATION

90 abatement of Service Tax on Flight Routed Via Regional Connectivity Airports

Amending the Notification No 262012- Service Tax dated the 20th June 2012 the Central Government has provided 90 abatement to provision of service by transport of passengers with or without accompanied belongings by air embarking from or terminating in a Regional Connectivity Scheme Airport with condition that CENVAT credit on inputs capital goods and input services used for providing the taxable service has not been taken by the service provider under the provisions of the CENVAT Credit Rules 2004

NOTIFICATION No 382016-ST-dt 3008 2016

Page 8 of 12

COMPANY LAW UPDATES

Amendment of Companies (Share Capital and Debentures) Rules 2014 In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act 2013 (18 of 2013) the Central Government hereby makes the amendment in the Companies (Share Capital and Debentures) Rules 2014 These rules may be called the Companies (Share Capital and Debentures) Fourth Amendment Rules 2016 They shall come into force on the date of their publication in the Official Gazette [Source Notification No GSR 791(E) dated 12th August 2016]

Issuance of rupee bonds to overseas investors by Indian companies-Clarification regarding

applicability of provisions of Chapter III of the Companies Act 2013

The matter relating to issue of rupee denominated bonds to overseas investors is being regulated by Reserve Bank of India (RBI) as part of ECB Policy framework It is accordingly clarified that unless otherwise provided in the circulardirectionsregulations issued by RBI provisions of Chapter III of the Act and Rule 18 of Companies (Share Capital and Debenture) Rules 2014 would not apply to issue of rupee denominated bonds made exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions [Source General Circular No 092016 dated 03rd August 2016]

CORPORATE LEGAL

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

Page 8 of 12

COMPANY LAW UPDATES

Amendment of Companies (Share Capital and Debentures) Rules 2014 In exercise of the powers conferred by sub-sections (1) and (2) of section 469 of the Companies Act 2013 (18 of 2013) the Central Government hereby makes the amendment in the Companies (Share Capital and Debentures) Rules 2014 These rules may be called the Companies (Share Capital and Debentures) Fourth Amendment Rules 2016 They shall come into force on the date of their publication in the Official Gazette [Source Notification No GSR 791(E) dated 12th August 2016]

Issuance of rupee bonds to overseas investors by Indian companies-Clarification regarding

applicability of provisions of Chapter III of the Companies Act 2013

The matter relating to issue of rupee denominated bonds to overseas investors is being regulated by Reserve Bank of India (RBI) as part of ECB Policy framework It is accordingly clarified that unless otherwise provided in the circulardirectionsregulations issued by RBI provisions of Chapter III of the Act and Rule 18 of Companies (Share Capital and Debenture) Rules 2014 would not apply to issue of rupee denominated bonds made exclusively to persons resident outside India in accordance with applicable sectoral regulatory provisions [Source General Circular No 092016 dated 03rd August 2016]

CORPORATE LEGAL

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

Page 9 of 12

Mergers amp Acquisition

Escorts sells auto parts business to Badve

Engineering

Farm equipment maker Escorts today

announced divestment of its OEM and export

business of auto product division to Punes

Badve EngineeringThe company however did

not disclose the deal sizeThe all cash deal is part

of the companys planned strategic reorientation

of the business

[Source VC Circle August 11 2016]

EnCashea raises funding from Kunal

Shah others in talks to buy smaller rival

RaddiMan

Scrap collection and recycling startup EnCashea

has raised an undisclosed amount in seed

funding from FreeCharge co-founders Kunal

Shah and Sandeep Tandon Tracxn Labs and a

group of unnamed investors The company is

now in advanced talks to acquire its city-based

rival RaddiMan

[Source VC Circle August 23 2016]

Quikr acquires ZapLuk to expand beauty

and wellness vertical

Online classifieds firm Quikr India Pvt Ltd has

acquired ZapLuk an on-demand beauty and

wellness services provider to grow its beauty

services brand AtHomeDiva ZapLuk co-

founder Lavanya Hariharan and about 50

stylists and professionals will be absorbed into

AtHomeDiva

[Source VC Circle August 24 2016]

Taparia family buys majority stake in

Guardian Lifecare

Taparia family who sold contraceptive maker

Famy Care to Mylan for $800 million last year

has acquired a majority stake in pharmacy chain

Guardian Lifecare Pvt Ltd The deal is valued at

Rs 55 crore and the legal dispute between

Guardian Lifecare and Samara Capital has been

resolved

[Source VC Circle August 26 2016]

Enterprise cloud firm Nutanix acquires

Sequoia-backed automation startup

Calmio

Cloud computing company Nutanix Inc has

acquired development and operations (DevOps)

automation startup Calmio for anundisclosed

sum Nutanix has also signed a definitive

agreement to acquire PernixData Inc a scale-out

data acceleration and analytics firm

[Source VC Circle August 31 2016]

Venture Capital

Mukesh Bansal and Ankit Nagorirsquos

CureFit invests $3 mn in CULT

Ankit Nagori and Mukesh Bansal‟s yet-to-be-

launched online preventive healthcare platform

CureFit has invested Rs 20 crore ($3 million) in

Bangalore-based CULT Fitness Pvt Ltd a fitness

startup that offers training programmes that do

not require the use of equipment

[Source VC Circle August 24 2016]

CORPORATE FINANCE

R N MARWAH amp CO LLP E rnmrnmin W wwwrnmin T 011-43192000

Page 10 of 12

Michael amp Susan Dell Foundation invests

$900K in ed-tech firm ConveGenius

Noida-based ConveGenius Edu Solutions Pvt

Ltd a mobile-based education venture has

raised equity investment worth Rs 6 crore

($900000) from Michael amp Susan Dell

Foundation The firm will leverage the funds to

provide impactful bdquoeducation for the masses

[Source VC Circle August 24 2016]

Agri-based venture Krishi Star raises seed

funding from Upaya Artha Venture

Krishi Star has raised an undisclosed amount in

seed funding from a consortium of four

investors led by Upaya Social Ventures and

Artha Venture Challenge along with 1to4

Foundation and an angel investor

[Source VC Circle August 26 2016]

Home design startup Livspace raises $15

mn from Bessemer others

home design and decor startup Livspace has

raised Rs 100 crore (around $15 million) in its

third round of funding led by existing investor

Bessemer Venture Partners The funding will be

used to expand operational footprint set up

new Livspace design studios expand the design

automation platform and optimise the backend

technology

[Source VC Circle August 29 2016]

Online photography startup Canvera

raises $3 mn more led by Info Edge

Online photography startup Canvera Digital

Technologies Pvt Ltd has raised Rs 20 crore ($3

million) led by existing investor Info Edge

(India) Ltd less than a year after it became one

of the first startups to report a bdquodown round‟

[Source VC Circle August 30 2016]

Paytm to raise funding from MediaTekrsquos

arm

One97 Communications Ltd which runs mobile

payment and e-commerce platform Paytm will

raise an undisclosed amount in funding from

Mountain Capital The funding will be used for

expanding boosting payments and commerce

and building its proposed payment bank

[Source VC Circle August 31 2016]

Private Equity

BCCLs Brand Capital backs online

classifieds firm Quikr

Online classifieds firm Quikr India Pvt Ltd has

secured Rs 130 crore ($194 million) from Brand

Capital the ad-for-equity investment arm of

media conglomerate Bennett Coleman and

Company Ltd (BCCL) The investment in Quikr

was made via fully convertible debentures

[Source VC Circle August 19 2016]

Fusion Microfinance raises $24 mn from

PE firm Creation Investments others

Fusion Microfinance has raised Rs 162 crore ($24

million) from US-based private equity firm

Creation Investments in a fourth strategic round

(Series D) of funding The funding will help

Fusion Microfinance to continue its organic

growth momentum as well as consider

inorganic opportunities in the microfinance and

new products

[Source VC Circle August 11 2016]

Page 11 of 12

TA Associates invests $140 mn in

womenwear maker W Matrix Partners

exits

TA Associates Management Lp has invested

$140 million (Rs 937 crore) in TCNS Clothing Co

Pvt Ltd which owns the W brand of clothing

for women to buy out shares from existing

shareholders including Matrix Partners India

[Source VC Circle August 19 2016]

ChrysCapital explores exit from Eris

Lifesciences

Private equity firm ChrysCapital is exploring

options to exit Ahmedabad-based

pharmaceutical company Eris Lifesciences Pvt

Ltd The PE firm is also speaking to merchant

banks for a possible listing of Eris

[Source VC Circle August 24 2016]

NephroPlus raises $15 mn from SeaLink

Capital IFC

Dialysis chain NephroPlus Health Services Pvt

Ltd said on Wednesday it has raised Rs 100

crore (nearly $15 million) from private equity

firm SeaLink Capital Partners and existing

investor International Finance Corporation in a

Series C round of fundraise

[Source VC Circle August 24 2016]

Prime Focus Technology raises funding

from Ambit Pragma

Prime Focus Technology (PFT) a subsidiary of

media services company Prime Focus has raised

an undisclosed amount in funding from private

equity firm Ambit PragmaThe company will

use the funds to intensify product development

of software as a service (SaaS)Products

[Source VC Circle August 30 2016]

Page 12 of 12

AUDIT AND ASSURANCE

CORPORATE AND LEGAL

CORPORATE FINANCE

TAX AND REGULATORY

Contact us

New Delhi T 011-43192000 E rnmrnmin Bangalore T +9880647825 E bangalorernmin Mauritius T+ 230 4542110 E kamalrnmin Hong Kong T +852 2115 9878 E raymondrnmin

Mumbai

T +912261174949

E ashishrnmin

Chennai

T +914442178153

E ashokrnmin

Pune

T +919823081701

E nitinrnmin

FIND US ON

SEPTEMBER 2016

07 Due date for furnishing of Challan -cum-statement in respect of tax deducted under Section 194-IA in the month of August 2016

15 Second installment for payment of advance income-tax for the assessment year 2017-18

22 Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of August 2016

30 Due date for deposit of tax deducted at source under Section 194-IA for the month of August 2016

OCTOBER 2016

07 Due date for deposit of tax deductedcollected for the month of September 2016

15 Quaterly statement of TCS deposited for the quarter ending September 30 2016

22 due date to issue of TDS certificate for tax deducted under section 194-IA in the month of September 2016

30 Due date to deposit of tax deducted at source under section 194-IA for the month of September 2016

NOVEMBER 2016

07 Due Date for deposit of tax deductedcollected for the month of October 2016

15 Quaterly TDS certificate (in respect of tax deducted for payments other 22 Due date to issue of tds certificate for tax deducted under section 194-IA in the month of October 2016

TAX DIARY

Page 11 of 12

TA Associates invests $140 mn in

womenwear maker W Matrix Partners

exits

TA Associates Management Lp has invested

$140 million (Rs 937 crore) in TCNS Clothing Co

Pvt Ltd which owns the W brand of clothing

for women to buy out shares from existing

shareholders including Matrix Partners India

[Source VC Circle August 19 2016]

ChrysCapital explores exit from Eris

Lifesciences

Private equity firm ChrysCapital is exploring

options to exit Ahmedabad-based

pharmaceutical company Eris Lifesciences Pvt

Ltd The PE firm is also speaking to merchant

banks for a possible listing of Eris

[Source VC Circle August 24 2016]

NephroPlus raises $15 mn from SeaLink

Capital IFC

Dialysis chain NephroPlus Health Services Pvt

Ltd said on Wednesday it has raised Rs 100

crore (nearly $15 million) from private equity

firm SeaLink Capital Partners and existing

investor International Finance Corporation in a

Series C round of fundraise

[Source VC Circle August 24 2016]

Prime Focus Technology raises funding

from Ambit Pragma

Prime Focus Technology (PFT) a subsidiary of

media services company Prime Focus has raised

an undisclosed amount in funding from private

equity firm Ambit PragmaThe company will

use the funds to intensify product development

of software as a service (SaaS)Products

[Source VC Circle August 30 2016]

Page 12 of 12

AUDIT AND ASSURANCE

CORPORATE AND LEGAL

CORPORATE FINANCE

TAX AND REGULATORY

Contact us

New Delhi T 011-43192000 E rnmrnmin Bangalore T +9880647825 E bangalorernmin Mauritius T+ 230 4542110 E kamalrnmin Hong Kong T +852 2115 9878 E raymondrnmin

Mumbai

T +912261174949

E ashishrnmin

Chennai

T +914442178153

E ashokrnmin

Pune

T +919823081701

E nitinrnmin

FIND US ON

SEPTEMBER 2016

07 Due date for furnishing of Challan -cum-statement in respect of tax deducted under Section 194-IA in the month of August 2016

15 Second installment for payment of advance income-tax for the assessment year 2017-18

22 Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of August 2016

30 Due date for deposit of tax deducted at source under Section 194-IA for the month of August 2016

OCTOBER 2016

07 Due date for deposit of tax deductedcollected for the month of September 2016

15 Quaterly statement of TCS deposited for the quarter ending September 30 2016

22 due date to issue of TDS certificate for tax deducted under section 194-IA in the month of September 2016

30 Due date to deposit of tax deducted at source under section 194-IA for the month of September 2016

NOVEMBER 2016

07 Due Date for deposit of tax deductedcollected for the month of October 2016

15 Quaterly TDS certificate (in respect of tax deducted for payments other 22 Due date to issue of tds certificate for tax deducted under section 194-IA in the month of October 2016

TAX DIARY

Page 12 of 12

AUDIT AND ASSURANCE

CORPORATE AND LEGAL

CORPORATE FINANCE

TAX AND REGULATORY

Contact us

New Delhi T 011-43192000 E rnmrnmin Bangalore T +9880647825 E bangalorernmin Mauritius T+ 230 4542110 E kamalrnmin Hong Kong T +852 2115 9878 E raymondrnmin

Mumbai

T +912261174949

E ashishrnmin

Chennai

T +914442178153

E ashokrnmin

Pune

T +919823081701

E nitinrnmin

FIND US ON

SEPTEMBER 2016

07 Due date for furnishing of Challan -cum-statement in respect of tax deducted under Section 194-IA in the month of August 2016

15 Second installment for payment of advance income-tax for the assessment year 2017-18

22 Due date for issue of TDS Certificate for tax deducted under section 194-IA in the month of August 2016

30 Due date for deposit of tax deducted at source under Section 194-IA for the month of August 2016

OCTOBER 2016

07 Due date for deposit of tax deductedcollected for the month of September 2016

15 Quaterly statement of TCS deposited for the quarter ending September 30 2016

22 due date to issue of TDS certificate for tax deducted under section 194-IA in the month of September 2016

30 Due date to deposit of tax deducted at source under section 194-IA for the month of September 2016

NOVEMBER 2016

07 Due Date for deposit of tax deductedcollected for the month of October 2016

15 Quaterly TDS certificate (in respect of tax deducted for payments other 22 Due date to issue of tds certificate for tax deducted under section 194-IA in the month of October 2016

TAX DIARY