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(Para 209) MoD inks Rs 10,147 Cr contracts with EEL, MIL & BEL for rockets (See 'Corp Brief') IBC - Bar on filing CIRP applications applies only to defaults that occur within moratorium period: HC (See 'Legal Desk') Number of commodities on e-NAM platform reaches 231 (See 'Corp Brief') IBC - Last payment made by corporate debtor within period of limitation amounts to acknowledgment u/s 19 of Limitation Act: NCLAT (See 'Legal Desk') BIS & British Standards Institution discuss hydrogen standardization (See 'Corp Brief') TM- When adoption of mark is tainted with bad faith, no amount of subsequent use can cleanse vice of dishonest adoption: HC (See 'Legal Desk') IICA, CMAI sign MoU to enhance capacity for decarbonisation (See 'Corp Brief') IBC - Resolution applicant shall obtain approval of Competition Commission of India under CCI Act prior to approval of such resolution plan by committee of creditors under IBC: SC LB (See 'Legal Desk') India-Japan Dialogue organized to strengthen bilateral cooperation in Steel Sector (See 'Corp Brief') Misc - Earnest money forfeited upon flat booking cancellation must be reasonable and not excessive enough to be considered as penalty u/s 74 of Contract Act: SC (See 'Legal Desk') MoS reaffirms India's commitment to global pharmaceutical standardization (See 'Corp Brief') A&C - Pendency of civil & criminal litigation inter se partners, cannot estop one of partners from invoking arbitration clause or bar reference of dispute for adjudication to arbitrator for determination: HC (See 'Legal Desk') Potassium derived from Molasses can be used by farmers: Minister (See 'Corp Brief') Arbitration Act -There is no bar to avail remedy u/s 9 of Arbitration Act: HC (See 'Legal Desk') Vesting Orders for 7 Coal Mines issued (See 'Corp Brief') IBC - Cause of action for initiating proceedings u/s 7 of IBC arises when debt is acknowledged by debtor: NCLAT (See 'Legal Desk') CCI okays acquisition of stake in POSCO India by POSCO India Processing Center (See 'Corp Brief') 'Haj Suvidha App' is for convenience of pilgrims: Rijiju (See 'Corp Brief') Arbitration Act - If respondent had waived right to raise objection regarding legal capacity of applicant to move application for appointment of Arbitrator, he cannot be permitted to raise objection at belated stage: HC (See 'Legal Desk') Bharat Tex is perfect example of industry-govt collaboration: Textiles Secretary (See 'Corp Brief') Web-portal enables citizens to participate in Youth Parliament program (See 'Corp Brief') BIS hosts Annual Convention in Healthcare Sector (See 'Corp Brief') SARFAESI - Claims of secured creditor precede claims of Sales Tax/VAT Departments; charge created by Sales Tax Department subsequent to charge created by bank under SARFAESI Act, lacks legal standing: HC (See 'Legal Desk') Unlocking creativity through Trailer Making Competition (See 'Corp Brief') India's First Ferret Research Facility dedicated to Nation (See 'Corp Brief') IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016- There is fiduciary angle to relationship between IP and IBBI: IBBI (See 'Legal Desk') IEPFA signs MoU with Association of Chartered Certified Accountants (See 'Corp Brief') Secretary chairs Stakeholders' Meeting to review preparations of India Steel 2025 (See 'Corp Brief') IBC - Non Fund Based facilities cannot be refused to be disbursed when approved Resolution Plan contains clause for their disbursement: NCLAT (See 'Legal Desk') Govt taking steps for Door-to-Door gas supply through pipeline (See 'Corp Brief') PMLA - Court woud not interfer with order passed as apellant fails to give explanation for embezzlement of funds: TRIBUNAL (See 'Legal Desk') Business trusts to pay tax at maximum marginal rate (See 'Corp Brief') Focus on nuclear energy to strengthen power infra: Manohar Lal (See 'Corp Brief') A&C - Mere existence of arbitration clause in agreement does not bar jurisdiction of civil court automatically: HC (See 'Legal Desk') Budget proposes surcharge levy on firms (See 'Corp Brief') A&C - Award without reasons would suffer from patent illegality as it completely ignores vital provisions of the agreement: HC (See 'Legal Desk') Budget offers incentives for International Finances Services Centre units (See 'Corp Brief') IBC - Copy of Resolution Plans submitted by other Prospective Resolution Applicants cannot be shared in advance with suspended management of corporate debtor, if suspended management is also RP: NCLAT (See 'Legal Desk') 'Bharattradenet' for global trade to be set up for trade financing (See 'Corp Brief') Arbitration Act - Court to appoint independent sole arbitrator as appointment procedure choosed by parties is no longer valid: HC (See 'Legal Desk')

Budget offers incentives for International Finances Services Centre units

Published: Feb 03, 2025

By TIOLCorplaws News Services

NEW DELHI, FEB 03, 2025: IN a move to further promote the growth of International Financial Services Centres (IFSCs) in India, the government has proposed several tax incentives and amendments aimed at enhancing the sector's attractiveness for both domestic and international businesses. The proposed changes are part of efforts to foster a world-class financial infrastructure in the country.

Extension of Sunset Dates for Tax Concessions

The government plans to extend the sunset dates for the commencement of operations in IFSC units. Tax concessions related to the relocation of funds and the start of operations in IFSC will now be extended until March 31, 2030. These amendments will take effect from April 1, 2025, ensuring long-term support for businesses operating in the IFSC.

Exemption on Life Insurance Policies from IFSC Insurance Offices

A significant change has been proposed for life insurance policies issued by IFSC Insurance offices. Currently, the exemption on life insurance proceeds is subject to premium limits-?2.5 lakh for unit-linked policies and ?5 lakh for others. The new proposal aims to exempt life insurance proceeds from IFSC Insurance offices for non-residents, without the existing premium limits, providing parity with other foreign jurisdictions. This amendment is also set to take effect from April 1, 2025.

Capital Gains and Dividend Exemption for Ship Leasing Units in IFSC

In a bid to expand the tax benefits to the ship leasing sector, the government has proposed extending the existing tax exemptions for aircraft leasing units to those engaged in ship leasing within IFSCs. Non-resident investors and IFSC units involved in ship leasing will be exempt from capital gains tax on the transfer of equity shares, as well as from dividend tax on payments made within the IFSC ship leasing business. This change will also take effect from April 1, 2025.

Rationalisation of Dividend Definition for Treasury Centres in IFSC

The government has also proposed rationalising the definition of "dividend" for corporate treasury centres in IFSCs. The revision addresses concerns about potential tax implications for loans and advances made between group entities, especially in cases where one entity operates as a global or regional corporate treasury centre. Under the proposed amendments, loans or advances between group entities-where one is a finance company or finance unit in an IFSC-will not be treated as "dividend." These changes aim to ensure smoother operations for treasury centres in India's IFSCs and are set to be effective from April 1, 2025.

These proposed changes reflect the government's continued efforts to make India's IFSCs more competitive and attractive to global financial services businesses, with the goal of positioning India as a hub for international finance.

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