Exemption to Interest Income on Specified Off-shore Rupee Denominated Bonds issued outside India

[Hindustani78]

Ministry of Finance
17-September, 2018 19:23 IST
Exemption to Interest Income on Specified Off-shore Rupee Denominated Bonds

Interest payable by an Indian company or a business trust to a non-resident, including a foreign company, in respect of rupee denominated bond issued outside India before the 1st of July, 2020 is liable for concessional rate of tax of Five Percent (5%). Consequently, Section 194LC of the Income-tax Act, 1961 (the Act) provides for the deduction of tax at a lower rate of five percent on the said interest payment.

Consequent to review of the State of Economy on 14th September, 2018 by the Prime Minister, Shri Narendra Modi, the Finance Minister, Shri Arun Jaitley had announced a Multi-pronged Strategy to contain the Current Account Deficit (CAD) and augment the Foreign Exchange Inflow. In this background, Low Cost Foreign Borrowings through Off-shore Rupee Denominated Bond have been further incentivised to increase the foreign exchange inflow.

Accordingly, it has been decided that interest payable by an Indian company or a business trust to a non-resident, including a foreign company, in respect of Rupee Denominated Bond issued outside India during the period from 17th September, 2018 to 31st March, 2019 shall be exempt from tax, and consequently, no tax shall be deducted on the payment of interest in respect of the said Bond under Section 194LC of the Act.

Legislative amendments in this regard shall be proposed in due course.



*****

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley addressing a press conference, in New Delhi on September 17, 2018.

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley addressing a press conference, in New Delhi on September 17, 2018. The Finance Secretary, Dr. Hasmukh Adhia, the Secretary, Department of Financial Services, Shri Rajeev Kumar and the Principal Director General (M&C), Press Information Bureau, Shri Sitanshu R. Kar are also seen.

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley addressing a press conference, in New Delhi on September 17, 2018. The Finance Secretary, Dr. Hasmukh Adhia, the Secretary, Department of Financial Services, Shri Rajeev Kumar and the Principal Director General (M&C), Press Information Bureau, Shri Sitanshu R. Kar are also seen.

The Union Minister for Finance and Corporate Affairs, Shri Arun Jaitley releasing the book entitled “Supporting Indian Farms the Smart Way” by Dr. Ashok Gulati, via video conference, in New Delhi on September 18, 2018.

 

[Hindustani78]

Ministry of Finance
17-September, 2018 19:22 IST
Auction for Sale (Re-issue) of Government Stocks

The Government of India has announced the Sale (Re-issue) of (i) “6.65 per cent Government Stock, 2020”for a notified amount of Rs.2,000 crore (nominal) through price based auction, (ii) “7.59 per cent Government Stock, 2026”for a notified amount of Rs.2,000 crore (nominal) through price based auction, (iii)“GoI Floating Rate Bond 2031” for a notified amount of Rs.4,000crore (nominal) through price based auction,(iv) “7.50 per cent Government Stock, 2034” for a notified amount of Rs.2,000 crore (nominal) through price based auction, and (v) “7.06 per cent Government Stock, 2046” for a notified amount of Rs.2,000 crore (nominal) through price based auction.Subject to the limit of Rs. 12,000 crore, being total notified amount, GoI will have the option to retain additional subscription up to Rs. 1,000 croreeach against anyone or more of the above securities. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India (RBI), Mumbai Office, Fort, Mumbai on September21, 2018(Friday).

Up to 5% of the notified amount of the sale of the stockswill be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on September21, 2018. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m.and 12.00 noon.

The result of the auctions will be announced on September21, 2018 (Friday)and payment by successful bidders will be on September24, 2018(Monday).

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.





******

 

[Hindustani78]

Ministry of Finance
20-September, 2018 16:27 IST
Exchange Rate of Foreign Currency Relating To Imported and Export Goods Notified

In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Indirect Taxes and Customs No.77/2018-CUSTOMS (N.T.), dated 6th September, 2018 except as respects things done or omitted to be done before such supersession, the Central Board of Indirect Taxes and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 21st September, 2018, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods.

SCHEDULE-I



Sl.No.

Foreign Currency

Rate of exchange of one unit of foreign currency equivalent to Indian rupees

(1)

(2)

(3)





(a)

(b)





(For Imported Goods)

(For Export Goods)

1.

Australian Dollar

53.95

51.60

2.

Bahrain Dinar

199.35

187.05

3.

Canadian Dollar

57.20

55.25

4.

Chinese Yuan

10.80

10.45

5.

Danish Kroner

11.60

11.20

6.

EURO

86.55

83.45

7.

Hong Kong Dollar

9.45

9.10

8.

Kuwait Dinar

248.30

232.60

9.

New Zealand Dollar

49.35

47.10

10.

Norwegian Kroner

9.10

8.75

11.

Pound Sterling

97.40

94.05

12.

Qatari Riyal

20.65

19.35

13.

Saudi Arabian Riyal

20.05

18.80

14.

Singapore Dollar

54.05

52.25

15.

South African Rand

5. 05

4.75

16.

Swedish Kroner

8.30

8.00

17.

Swiss Franc

76.90

73.95

18.

UAE Dirham

20.45

19.20

19.

US Dollar

73.65

71.95



SCHEDULE-II



Sl.No.

Foreign Currency

Rate of exchange of 100 units of foreign currency equivalent to Indian rupees

(1)

(2)

(3)





(a)

(b)





(For Imported Goods)

(For Export Goods)

1.

Japanese Yen

66.00

63.60



*****

 

[Hindustani78]

Ministry of Finance
24-September, 2018 17:40 IST
Auction for Sale (Re-issue) of Government Stocks

The Government of India has announced the Sale (Re-issue) of (i) “7.37 per cent Government Stock, 2023” for a notified amount of Rs. 2,000 crore (nominal) through price based auction, (ii) “7.17 per cent Government Stock, 2028” for a notified amount of Rs. 4,000 crore (nominal) through price based auction, (iii) “7.40 per cent Government Stock, 2035” for a notified amount of Rs. 2,000 crore (nominal) through price based auction, and (iv) “7.72 per cent Government Stock, 2055” for a notified amount of Rs. 4,000 crore (nominal) through price based auction. Subject to the limit of Rs. 12,000 crore, being total notified amount, GoI will have the option to retain additional subscription up to Rs. 1,000 crore each against any one or more of the above securities. The auctions will be conducted using multiple price method. The auctions will be conducted by the Reserve Bank of India, Mumbai Office, Fort, Mumbai on September 28, 2018 (Friday).

Up to 5% of the notified amount of the sale of the stocks will be allotted to eligible individuals and Institutions as per the Scheme for Non-Competitive Bidding Facility in the Auction of Government Securities.

Both competitive and non-competitive bids for the auction should be submitted in electronic format on the Reserve Bank of India Core Banking Solution (E-Kuber) system on September 28, 2018. The non-competitive bids should be submitted between 10.30 a.m. and 11.30 a.m. and the competitive bids should be submitted between 10.30 a.m. and 12.00 noon.

The result of the auctions will be announced on September 28, 2018 (Friday) and payment by successful bidders will be on October 1, 2018 (Monday).

The Stocks will be eligible for “When Issued” trading in accordance with the guidelines on ‘When Issued transactions in Central Government Securities’ issued by the Reserve Bank of India vide circular No. RBI/2006-07/178 dated November 16, 2006 as amended from time to time.

*****

Ministry of Finance
24-September, 2018 17:25 IST
Extension of date for filing of Income Tax Returns and Audit Reports from 30th September, 2018 to 15th October, 2018

The due date for filing of Income Tax Returns and Audit Reports for Assessment Year 2018-19 is 30th September, 2018 for certain categories of taxpayers. Upon consideration of representations from various stakeholders, the Central Board of Direct Taxes(CBDT) extends the ‘due date’ for filing of Income Tax Returns as well as reports of Audit (which were required to be filed by the said specified date) from 30th September, 2018 to 15th October, 2018 in respect of the said categories of taxpayers. However, there shall be no extension of the due date for the purpose of section 234A (Explanation 1) of the I.T. Act, 1961 pertaining to Interest for defaults in furnishing return, and the assessee shall remain liable for payment of interest as per provisions of section 234A of the Act.



*****