Walmart-Flipkart deal turns political, lobby groups allege flouting of FDI norms

Walmart-Flipkart deal turns political, lobby groups allege flouting of FDI norms

The Deal is against the FDI Norms.

Amid acquisition talks between Walmart and Flipkart, opposition from political corridors has already started brewing against the deal. They allege the deal is against FDI norms.

The Swadesh Jagaran Manch (SJM), an affiliate of the Rashtriya Swayamsevak Sangh (RSS), and other trade lobby groups have raised the concerns.

FDI in ecommerce is not allowed.

The SJM’s national co-convenor Ashwani Mahajan said that the deal is in violation of Indian laws, as FDI in ecommerce is not allowed.

 Kill competition and flush small retailers.

He alleged that companies such as Flipkart and Amazon were circumventing FDI rules by operating the marketplace model. He also believed that the foreign entities will also kill competition and flush small retailers.

Retailers Association of India (RIA) raised the issue of FDI rules violations by the e-tailers.

In a complaint to Commerce Minister Suresh Prabhu, the association alleged that these marketplace models have been operating against the spirit of the policy. It further added that these firm have been influencing prices on their platforms and illegally offers abnormal discounts.

Besides, All India Online Vendors’ Association (AIOVA), a group of 3500 online sellers, is another grudging party which has not been kept in loop of any communication between Flipkart and Walmart. They are unsure what would be their future on the platform.

100 per cent FDI in online retail of goods and services under the so-called “marketplace model”

In March last year, the government announced to introduce 100 per cent FDI in online retail of goods and services under the so-called “marketplace model” through the automatic route, seeking to legitimize existing businesses of e-commerce companies operating in India.

DIPP’s Clarification

At that time, department of industrial policy and promotion (DIPP) explained that the marketplace model is an information technology platform run by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.

DIPP had prohibited FDI in e-commerce companies that own inventories of goods and services and sell directly to consumers using online platforms

RBI Tightens Monitoring of Liberalised Remittance Scheme (LRS) for Overseas Money Transferring

RBI Tightens Monitoring of Liberalised Remittance Scheme (LRS) for Overseas Money Transferring

The Reserve Bank today tightened reporting norms for the Liberalised Remittance Scheme (LRS) under which an individual can transfer up to USD 2,50,000 abroad in a year.

Declaration made by the Remitter

The LRS transactions are currently permitted by banks based on the declaration made by the remitter.

The monitoring of adherence to the limit is confined to obtaining such a declaration without independent verification, in the absence of a reliable source of information.

"In order to improve monitoring and also to ensure compliance with the LRS limits, it has been decided to put in place a daily reporting system by AD banks of transactions undertaken by individuals under LRS, which will be accessible to all the other ADs," the RBI said in a notification.

To Upload Daily Transaction-Wise Information 

Now banks will be required to upload daily transaction-wise information undertaken by them under LRS.

Under the LRS, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year for any permissible current or capital account transaction or a combination of both.

Individuals can avail of foreign exchange facility for the purposes within the limit of USD 2,50,000 only.

The scheme was introduced on February 4, 2004, with a limit of USD 25,000.

The LRS limit has been revised in stages consistent with prevailing .

Courtesy - Indian Express 

SEIS Benefits on your Foreign Exchange Earnings under FTP 2015 - 2021 - Benefits for Service Exporters and Product Exporters

SEIS Benefits on your Foreign Exchange Earnings under FTP 2015 - 2021 - Benefits for Service Exporters and Product Exporters

What is SEIS ?

Service providers of eligible services shall be entitled to duty credit scrip at notified rates on the net foreign exchange earned. Duty credit scrips can be used for the payment of custom duties, excise duties, service tax on procurement of services, custom duty in case of default in fulfillments of export obligation under Advance Authorization/EPCG, etc.,

 Further, the SEIS scheme has given relaxation to the actual user condition and duty credit scrips and goods imported using duty credit scrips are freely transferable. Duty credit scrip would be valid for a period of 18 months from the date of issue

As per new FTP announced on 1st April’ 15; you shall be eligible for benefits under the SEIS Scheme against the Services earned in Foreign Exchange/ Deemed Foreign Exchange.

Who are All Eligible for Claiming the Benefits ?

For Company / LLP

Service Providers of notified services, located in India are eligible for the Service Exports from India Scheme. To be eligible, a service provider (Company / LLP / Partnership Firm) should have a minimum net free foreign exchange earnings of USD15000 in the preceding financial year to be eligible for duty credit scrips.

For Partnership & Individual Service Providers

For proprietorships or individual service providers, a minimum net foreign exchange earnings of USD10,000 in the preceding financial year is required to be eligible for the scheme. Also, in order to claim reward under the SEIS scheme, the service provider shall have to have an active Import Export Code (IE Code) at the time of rendering such services for which rewards are claimed.

Eligible Service Providers for SEIS Scheme

1	Professional Services
2	Research and Development Services
3	Rental/Leasing Services without Operators
4	Audiovisual Services
5	Construction and Related Engineering Services
6	Educational Services
7	Environmental Service
8	Health and Social Services
9	Tourism and Travel Services
10	Recreational, Cultural and Sporting Services
11	Other Business Services

What Service we are Providing ?

We do apply and get the Issuance of SEIS Scrip from the Government/ DGFT in your favour as per the prescribed guidelines of the FTP.

The scrips, if preferred so, may be transferred/sold to anybody in advance at best rate, which will be paid immediately against delivery of Scrip along with Transfer Letter duly attested by your Bankers and the Sale Invoice.

We do charge our commission for processing and preparing the Application for SEIS Scrip only after issuance of the same in your favour; except your direct payment of Governmental fee for it, as per Policy.