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Representation to Finance Ministry & Financial Institutions » Anomalies in deposit application of Tata Motors Ltd. - 04.03.2009
Representation to Finance Ministry & Financial Institutions INDEX
- Aadhaar Enrolment to NRIs and PIOs
- Suggestions Re. Provisions of FEMA 1999 - 11th May, 2022
- Representation for providing details of Foreign Bank accounts by NRIs in Income Tax Returns.
- Levying of Income Tax on interest earned on NRE & FCNR Accounts of NRIs
- Indian Banks requested to inform USA NRIs regarding reporting under FATCA
- TDS as per DTAA - our rep. to SBI in 2008 finds place in Finance Bill, 2012
- Suggestions Re. Provisions of FEMA 1999 - 8 June 2011
- NRI's Global Income to be taxed - a Fallacy -19.10.2010
- DTC 2010 - Anomalies - our submission to Hon.Finance Minister - 30.10.2010
- Anomalies in deposit application of Tata Motors Ltd. - 04.03.2009
- THANKS - Hon.Finance Minister,Sir! Our Memo.re:TDS finds favour & Compies of various Memorandams
- Anomaly in Tax Deduction at Source (TDS) under Double Tax Treaty - 06.12.2008 (SBI)
- Anomalies in Times of India / Economic Times article regarding : "NRIs and PIOs can invest in real Estate in India - 01.12.2008
- Anomalies in Mid-term Review of Annual Policy for 2006-07 (04.11.2006)
- TDS anomalies regarding Long Term capital gains of NRIs. - 06.03.2006
- NRE / FCNR interest not Tax Exempt ! - 06.02.2006
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- Aadhaar Enrolment to NRIs and PIOs
- Suggestions Re. Provisions of FEMA 1999 - 11th May, 2022
- Representation for providing details of Foreign Bank accounts by NRIs in Income Tax Returns.
- Levying of Income Tax on interest earned on NRE & FCNR Accounts of NRIs
- Indian Banks requested to inform USA NRIs regarding reporting under FATCA
- TDS as per DTAA - our rep. to SBI in 2008 finds place in Finance Bill, 2012
- Suggestions Re. Provisions of FEMA 1999 - 8 June 2011
- NRI's Global Income to be taxed - a Fallacy -19.10.2010
- DTC 2010 - Anomalies - our submission to Hon.Finance Minister - 30.10.2010
- Anomalies in deposit application of Tata Motors Ltd. - 04.03.2009
- THANKS - Hon.Finance Minister,Sir! Our Memo.re:TDS finds favour & Compies of various Memorandams
- Anomaly in Tax Deduction at Source (TDS) under Double Tax Treaty - 06.12.2008 (SBI)
- Anomalies in Times of India / Economic Times article regarding : "NRIs and PIOs can invest in real Estate in India - 01.12.2008
- Anomalies in Mid-term Review of Annual Policy for 2006-07 (04.11.2006)
- TDS anomalies regarding Long Term capital gains of NRIs. - 06.03.2006
- NRE / FCNR interest not Tax Exempt ! - 06.02.2006
----- Original Message -----
From: councelor@femaonline.com
Sent: Wednesday, February 04, 2009 12:55 AM
To: Swati Sheth ( TML MUM ); raqvi.kant@tatamotors.com
Subject: Anomalies in deposit application of Tata Motors Ltd.
Managing Director,
nrimutualfunds.com -presenting the very best of Equity and Income schemes of Indian Mutual Funds and global indices across the world in $ terms.
Chief Executive
Cell : 0091 98240 49944.
NRI deposits in Companies :
.03 Such deposits from NRO account can be placed on non-repatriation basis. [ Annex.1& 2 ]
.04 However, deposits accepted before April 2004 on repatriation or non repatriation basis can be renewed as such.
2. As such the application form of Tata Motors should clearly indicate these facts which, unfortunately, are not specified.
.03 Repayment cannot be credited in NRE/FCNR(B) account in case of investment on non-repatriation bssis.
.04 NRNR and NRSR accounts are done away with since 01-04-2002 and as such are not in existence.[Annex.3 ]
5. Said Para also states that Income Tax at source will be deducted as applicable to Non-residents.
Foreign Exchange Management (Deposit) Regulations, 2000.
7. Acceptance of deposits by persons other than authorised dealer/ authorised bank.
(1) A company registered under Companies Act, 1956 or a body corporate created under the Act of Parliament or State Legislature shall not accepted deposits on repatriation basis from a non-resident Indian.
(2) A company registered under Companies Act, 1956 or a body corporate created under the Act of Parliament or State Legislature may renew the deposits which had been accepted on repatriation basis from a non-resident Indian subject to terms and conditions mentioned in Schedule 6.
(3) A company registered under Companies Act, 1956 or a body corporate or a proprietary concern or a firm in India may accept deposits from a non-resident Indian on non-repatriation basis, subjected to the terms and conditions mentioned in Schedule 7. Foreign Exchange Management (Deposit) Regulations, 2000.
SCHEDULE 7
[ See Regulation 7(2) ]
Acceptance of deposits by Indian proprietorship concern/firm or company (including non-banking finance company registered with Reserve Bank) on non-repatriation basis from Non-Resident Indians and persons of Indian origin resident outside India
A proprietorship concern or a firm in India, may accept deposits on non-repatriation basis from NRIs, and a company incorporated in India (including a non-banking finance company registered with Reserve Bank) may accept deposits on non-repatriation basis from NRIs [***]1, subject to the following conditions :
i) In the case of a company, the deposits may be accepted either under private arrangement or under a public deposit scheme.
ii) If the deposit accepting company is a non-banking finance company, it should be registered with the Reserve Bank and should have obtained the required credit rating as stipulated under the guidelines issued by Reserve Bank for such companies.
iii) The maturity period of deposit shall not exceed 3 years.
iv) If the deposit accepting company is a non-banking finance company the rate of interest payable on deposits shall be in conformity with the guidelines/directions issued by Reserve Bank for such companies. In other cases the rate of interest payable on deposits shall not exceed the ceiling rate prescribed from time to time under the Companies (Acceptance of Deposit) Rules, 1975
V)The amount of deposit shall be-received by debit to NRO account only, provided that the amount of the deposit shall not represent inward remittances or transfer of funds from NRE/FCNR(B) accounts into the NRO account.
vi) The proprietorship concern/firm/company accepting the deposit should comply with the provisions of any other law, rules, regulations or orders made by Government or any other competent authority, as are applicable to it in regard to acceptance of deposits.
vii)The proprietorship concern, firm or company accepting the deposit shall not utilise the amount of deposits for relending (not applicable to a Non-Banking Finance Company) or for undertaking agricultural/plantation activities or real estate business or for investing in any other concern or firm or company engaged in or proposing to engage in agricultural/plantation activities or real estate business.
viii)The amount of deposits accepted shall not be allowed to be repatriated outside India.
Notification No.FEMA. 52 /RB – 2002 Dated March 1, 2002
Foreign Exchange Management (Deposit) (Amendment) Regulations, 2002 In exercise of the powers conferred by clause (f) of sub-section (3) of Section 6 and sub-section (2) of Section 47 of the Foreign Exchange Management Act,1999 (42 of 1999) and in partial modification of Notification No.FEMA 5 /2000-RB dated May 3, 2000, the Reserve Bank of India makes the following amendments in the Foreign Exchange Management (Deposit) Regulations, 2000, namely : 1. (i) These Regulations may be called the ‘Foreign Exchange Management (Deposit) (Amendment) Regulations, 2002.’
(ii) They shall come into force on 1st day of April 2002. 2. In the Foreign Exchange Management (Deposit) Regulations, 2000,(a) in Regulation 5, (i) in sub-regulation (1), clauses (iv) and (v) shall be omitted;
(ii) in sub-regulation (2), for the words and figures "clauses (i), (iii) and (v)", the words and figures "clauses (i) and (iii)" shall be substituted;
(iii) after sub-regulation (2), the following sub-regulation shall be added,
namely:-
"(3) (a) On and from 1st April 2002,
(i) no deposit, whether by way of renewal of existing deposit or otherwise, shall be accepted under the Non-Resident (Non-Repatriable) Rupee Account Scheme (NRNR Account) or the Non-Resident (Special) Rupee Account Scheme (NRSR Account);
(ii)existing deposits under the NRNR Account Scheme may be continued only upto the date of maturity;
(iii) on maturity of the existing deposit under the NRNR Account Scheme, the maturity proceeds shall be credited to the accountholder’s Non-Resident (External) Account (NRE Account), after giving notice to the account holder.
(b) (i) the existing account in the form of a term deposit of the NRSR Account Scheme may be continued till the date of maturity.
(ii) on maturity of the existing term deposit under the NRSR Account Scheme, the maturity proceeds shall be credited to the accountholder’s Non-Resident (Ordinary) Account (NRO Account).
(iii) existing NRSR account, other than a term deposit, shall not be continued after 30th September 2002 and may at the option of the account holder, be closed or the balance therein credited to his NRO account on or before that date.
Explanation: For the purpose of this sub-regulation, "existing deposit" or "existing account" means a deposit or an account held on 31st March 2002".
(b) in Schedule 4, in Paragraph 1, for the first sub-paragraph, the following sub-paragraph shall be substituted, namely:-
"Any person resident outside India (except individuals/entities of Pakistan/Bangladesh nationality/ownership) may open NRNR account with an authorised dealer, provided that no such account shall be opened on and from 1st April 2002, whether by renewal of existing deposit or otherwise."
(c) in Schedule 5, in Paragraph 1, after sub-paragraph (iii), the following sub-paragraph shall be inserted, namely:-
"(iv) No account under NRSR Account Scheme shall be opened on and from 1st April 2002, whether by renewal of existing deposit or otherwise."
(Vepa Kamesam)
Deputy Governor THE FINANCE ACT, 2008.
THE FIRST SCHEDULE
(See section 2)
PART II
RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES
In every case in which under the provisions of sections 193, 194, 194A, 194B, 194BB, 194D and 195 of the Income – tax Act, tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:--
Rate of income-tax*
1. In the case of a person other than a company--
(a) where the person is resident in India---
.
.
(b) where the person is not resident in India ---
(i) in the case of a non-resident Indian---
(A) on any investment income 20 per cent
(B) on income by way of long term capital gains
referred to in section 115E. 10 per cent
(C) on income by way of short term capital gains
referred to in section 111A. 15 per cent
(D) .
.
.
.
(K) on the whole of the other income 30 per cent
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