We are happy to present the thirteenth issue of our e-magazine – Trilegal Quarterly Roundup.
If you would like to navigate to the magazine directly, click here. If you would like to read a brief summary of what this issue features, please continue reading below and use the hyperlinks provided to access individual features.
INSIGHTS
- Delhi High Court Decision Reignites Debate: Can Profit be Attributed to the Permanent Establishment of a Non-Resident Entity in India Despite a Global Level Loss? In a ruling with significant implications for multinational corporations with a presence in India, the Delhi High Court recently held that a permanent establishment must be treated as a separate taxable entity, regardless of the overall financial performance of the enterprise. While this decision aligns with international tax principles, it overturns a previous ruling and may lead to further judicial challenges and clarifications in the future.
- Shifting Trends in Anti-Dumping Duties: Back to Normal?After rarely rejecting recommendations for the imposition of anti-dumping duties until 2019, India’s Ministry of Finance began rejecting most recommendations from 2020 to mid-2023. This article traces this shift in trend and a recent return to the traditional approach of accepting recommendations and discusses the way forward for domestic producers.
QUARTERLY MILESTONES
- Corporate
- Guidelines for borrowing by Category I and Category II AIFs and maximum permissible limit for extension of tenure by LVFs
- Merger rules amended to permit foreign holding company to merge with Indian subsidiary under the fast-track route
- Framework for foreign venture capital investors revamped to streamline registration process, eligibility criteria and registration renewal
- SEBI issues guidelines for migration of venture capital funds to the alternative investment funds framework to increase investor protection and ensure operational continuity
- Companies rules amended to streamline regulatory compliance and enhance transparency
- Dispute Resolution
- Supreme Court:
- clarifies that an application for extension of time-period for making an award is maintainable even after expiry of timelines under the Arbitration Act
- clarifies that a ‘free of cost’ copy of an NCLT order is on the same footing as a paid certified copy
- rules that an arbitration agreement will survive ‘full and final settlement’ of a contract
- Conflicting High Court rulings on applicability of Bharatiya Nagarik Suraksha Sanhita to proceedings initiated after 1 July 2024 but arising from earlier FIRs
- Financial Regulatory Regime
- Amendments proposed to Rule 8 of the Securities Contracts (Regulation) Rules, 1957 to relax the prohibition on stockbrokers from carrying out non-securities business
- Framework for foreign venture capital investors revamped to streamline registration process, eligibility criteria and registration renewal
- Asset management companies mandated to establish institutional mechanism for fraud prevention
- Master directions on fraud risk management issued for banks and non-banking financial companies
- RBI introduces scheme for trading and settlement of sovereign green bonds in International Financial Services Centre
- Banking and Finance
- Proposed amendments to the regulatory framework around export and import of goods and services
- SEBI:
- introduces reduced denomination for the issuance of debt securities and non-convertible redeemable preference shares
- simplifies and streamlines the issuance process of debt securities
- aligns the timelines for submission of payment obligation status to stock exchanges for listed commercial papers with those for listed non-convertible securities
- Direct Tax
- Delhi High Court:
- analyses the availability of grandfathering benefit under India-Mauritius tax treaty and upholds validity of tax residency certificates for claiming treaty benefits
- reignites debate on whether profit can be attributed to the permanent establishment of a non-resident enterprise in India despite a global level loss
- Indirect Tax
- GST regime amended to provide a streamlined procedure for initiating proceedings, an amnesty scheme, regularisation of unpaid taxes, and extension of certain timelines
- Supreme Court upholds constitutional validity of ITC blockage in case of construction of immovable property; provides conditions for treating a building as a ‘plant’ for claiming ITC
- Supreme Court dismisses review petition against its earlier judgment regarding imposition of interest and penalty on delayed payment of countervailing duties
- High Courts hold that issuance of a single show cause notice consolidating multiple tax periods contravenes the provisions of the GST law
- Gauhati High Court quashes notification extending limitation period for certain proceedings issued without the GST Council’s recommendation
- International Trade
- Rules amended to allow new exporters to request separate countervailing duty rate
- Trade remedy actions on imports into India in the third quarter of 2024
- Export of steel products from India face anti-dumping investigations in various countries
- Competition
- Major changes made to the merger control regime in India to streamline the merger review process
- Competition Commission of India’s general regulations revised to increase transparency, compliance and monitoring
- Director General directed to recall certain investigation reports due to confidentiality concerns
- High Courts increase scrutiny of antitrust investigations to ensure procedural compliance
- Private Client
- Supreme Court holds legal heirs not liable for personal contractual obligations of the deceased
- US government proposes to increase reporting burden for foreign trusts and gifts from non-US persons
- NCLT permits a private trustee company to convert to a company limited by guarantee
- Bombay High Court holds that applications to waive cooling-period in divorce proceedings must not be rejected mechanically
- Real Estate
- New regime for apartment ownership in Tamil Nadu to revive ageing buildings and boost redevelopment
- Life Sciences
- Significant regulatory changes for Clinical Research Organisations
- Uniform Code for Marketing Practices in Medical Devices issued to ensure ethical practices in the industry
- Certain new drugs exempted from local clinical trial requirement if already approved by specified countries
- Copyright
- DPIIT withdraws notification which included internet transmissions in the statutory licensing regime
- Delhi High Court grants ‘dynamic+ injunctions’ against rogue websites unauthorisedly displaying copyrighted works
- Bombay High Court quashes circular exempting performance of music played at weddings from copyright infringement
- Trademarks, Patents and Geographical Indications
- Delhi High Court upholds restraint against use of the same mark for allied or cognate products catering to the same set of users
- Calcutta High Court introduces new rules forming its own Intellectual Property Division
- Committees constituted to draft a code of conduct to govern patent and trademark agents
- Delhi High Court holds algorithmic processes not patentable
- New rules for handling complaints against trademark and geographical indication violations
- Space and Telecommunications
- Ministry of Information and Broadcasting clarifies authorisation requirements for the operation of non-Indian satellites
- TRAI revises the quality-of-service standards for access and broadband services
- TRAI issues further directions to combat spam communications
- Technology and Advertising
- Bombay High Court strikes down an amendment enabling the government to establish a fact check unit for digital media
- RBI issues directions on cyber resilience and digital payment security for non-bank payment system operators
- SEBI issues new cyber security and cyber resilience framework
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