issue of equity shares/ preference shares under the Government route by conversion of import of capital goods - Amendments

Issue of equity shares/ preference shares under the Government route by conversion of import of capital goods - Amendments

Now, no Shares in the Indian company can be allotted for the seller ofthe second hand imported machinaries . Only foreign suppliers of new machinaries are eligible for issue of Equity shares with the Repatriation benefits under government approval route .

The following is the changes made in the circular  A.P. (DIR Series) Circular No. 74 dated June 30, 2011 read with A.P. (DIR Series) Circular No. 55 dated December 9, 2011.

.(DIR Series) Circular No. 74 dated June 30, 2011	Earlier Condition	Revised condition
Para 3(I)	Import of capital goods/ machineries/equipments (including second-hand machineries),	Import of capital goods/ machineries/equipments (excluding second-hand machineries),
Para 3(I)(b)	There is an independent valuation of the capital goods / machineries / equipments (including second-hand machineries) by a third party entity, preferably by an independent valuer from the country of import along with production of copies of documents /certificates issued by the customs authorities towards assessment of the fair-value of such imports; Ref: A. P. (DIR Series) Circular No.74 dated 10th January 2013	There is an independent valuation of the capital goods / machineries / equipments (excluding second-hand machineries) by a third party entity, preferably by an independent valuer from the country of import along with production of copies of documents /certificates issued by the customs authorities towards assessment of the fair-value of such imports;