Wednesday, June 9, 2010

X Visa for India: Grant, extension and permissible activities

We have provided information on the X Visa for India in our past articles. Ministry of Home Affairs, Foreigners Division, New Delhi has provided more specific information regarding grant and extension of X visa in India. The X visas are meant to be used only within the guidelines of prescribed by Ministry of Home Affairs, Foreigners Division, New Delhi and no employment and business activity is permitted on X visas.

Here is the official text related to X visas in India:

As per the extant instructions of the Government of India, an Entry (X) Visa can only be granted to the following persons:-

(a) A foreigner of Indian origin, who wishes to come to India for visiting relatives, holiday etc.

(b) Spouse and children of a foreigner of Indian origin

(c) Spouse / dependents of foreigners coming to India on any other type of valid visa like Student/Business/Employment/Research etc.

Duration of Extension of (X) Visa

Missions/Posts abroad can grant an Entry (‘X’) for a period of five years at a time, with multiple entry facility, subject to usual checks to persons of Indian Origin. The extension of the stay of persons at (a) and (b) above may be granted by the State Government/Union Territory Administration/FRRO concerned subject to the following conditions:-

(I) The initial validity of the Residential Permit shall not exceed one year which may be extended on year to year basis upto 5 years from the date of issue of visa, if further extension is required, the proposal may be referred to MHA for clearance. MHA would grant extension for one year after the expiry of the initial period of five years. Subsequent extensions, if any, upto a total period of another 5 years would be granted by the State Governments/ UTs /FRROs concerned.

(II) The foreigner shall not engage in business or employment or any activity which is not in accordance with the type of visa held by him/her

(III) Name of the foreigner shall not figure in any Ration card and/or Electoral Rolls

(IV) Passport/Residence Permit of the foreigner to be stamped. “Business/employment not permitted on XV

A foreigner of Indian Origin means:-

1. a person who at any time held an Indian passport; or

2. a person who or either of his/her parents or grand parents or great grandparents, was born in, and was permanently resident in India, provided neither was at any time a citizen of Afghanistan, Bangladesh, China, Pakistan or Sri Lanka or any other country that may be specified by the Government of India from time to time; or

3. a person who is the spouse of a citizen of India or a person of Indian origin covered under (1) and (2) above.

Frequently asked questions with regard to the above type of visa and replies thereto are outlined below for information:-

Q.1. What activities are permissible on Entry (‘X’) visa ?

Ans.: Study upto the 12th Standard by minor, dependent children of Indian Origin can be undertaken. Holder of ‘X’ visa cannot undertake business/economic activities.

Q.2. Can a person holding Entry ‘X’ visa indulge in Business activities?

Ans.: No. Business is not permitted on X visa.

Q.3. Can a person holding Entry ‘X’ visa accept employment ?

Ans.: No. Employment is not permitted on X visa.

Q.4. Can Entry ‘X’ visa be granted to foreigner parents of foreign nationals studying in India?

Ans.: No. Parents of foreign students can visit India on Tourist (‘T’) visa for short duration (upto 6 months).

Q. 5. Which type of visa to be given to foreigner spouse of India Nationals ?

Ans.: Entry (X) visa.

Customs requirements for passengers going out of India: General requirements

Here is the official text of the general requirements for all passengers going out of India:

All the passengers leaving India by Air are subject to clearance by Custom Authorities. Only bonafide baggage is allowed to be cleared by passengers. There is a procedure prescribed whereby the passengers leaving India can take the export certificate for the various high value items as well as jewellery from the Customs authorities. Such an export certificate comes handy while bringing back the things to India so that no duty is charged on such goods exported by the passenger.

OTHER INFORMATION

1. Export of most species of wild life and articles made from wild flora and fauna, such as ivory, musk, reptile skins, furs, shahtoos etc. is prohibited.

2. Trafficking of narcotic drugs and psychotropic substances is prohibited.

3. Export of goods purchased against foreign exchange brought in by foreign passengers are allowed except for prohibited goods.

4. Carrying of Indian currency notes in the denomination of Rs. 500 and Rs. 1000 to Nepal is prohibited.

5. Export of Indian Currency is strictly prohibited. However Indian residents when they go abroad are allowed to take with them Indian currency not exceeding Rs. 5000.

6. Tourists while leaving India are allowed to take with them foreign currency not exceeding an amount brought in by them at the time of their arrival in India. As no declaration is required to be made for bringing in foreign exchange / currency not exceeding equivalent of U.S. $ 10000, generally tourists can take out of India with them at the time of their departure foreign exchange/currency not exceeding the above amount.

Indian currency in Nepal: Ban on Indian Rs. 500 and Indian Rs. 1000 bank currency notes in Nepal

The Indian currency notes of Rs 500 and Rs 1000 are banned in Nepal. Kindly do not carry Indian Rs. 500 and Indian Rs. 1000 bank notes in Nepal. It’s applicable to both Indian and foreign nationals traveling to Nepal. In you are caught with Indian Rs. 500 or Indian Rs. 1000 notes in Nepal, the entire amount in Rs. 500 or Indian Rs. 1000, will be confiscated and you may be subjected to fine or imprisonment( up to three years) in Nepal.

All confiscated Indian currency notes of Rs 500 and Rs. 1000 are sent to Central bank of Nepal. There is an estimated Rs 500 million worth of confiscated Indian currency of Rs 500 and Rs. 1000 notes with laying useless with Central Bank of Nepal.

(Source: Central Board of Excise and Customs, Government of India)

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Here is the official text from Government of India:

Circular No. 81 /2000-Cus

dated 3-10-2000

F.NO. 552/47/2000-LC

Government of India

Ministry of Finance

Department of Revenue

Sub: Possession of Rs. 500 denomination Indian currency notes - informing Indian passengers about the prohibition

His Majesty's Government of Nepal has issued a Gazette Notification on June 26, 2000, making the possession of Rs. 500-denomination Indian currency notes in Nepal an offence under Section 5 of Foreign Exchange (Regulation) Act, 2019 (BS) (1962). According to clause (a) of the said Notification, Indian currency notes of Rs. 500-denomination are not permitted anywhere in the Kingdom of Nepal, since these are non-exchangeable. The said Notification, accordingly, prohibits the currency notes of this denomination to be either taken out or brought inside Nepal. Further, the 500-Rupee notes in possession of the defaulters are liable to be seized and a sentence of up to three years imprisonment could be awarded.

2. To ensure that Indian nationals visiting Nepal are not inconvenienced for carrying such notes inadvertently/unknowingly, it is requested that necessary action may be urgently taken to give wide publicity to the aforesaid restrictions and contents of the said Nepalese Gazette Notification prohibiting the possession of Indian currency notes of Rs. 500-denomination in Nepal.

3. You are requested to prominently display notices at the Airports and Land Customs Stations highlighting this fact and advising all travellers to Nepal regarding this new provisions of Nepalese law.


Monday, June 7, 2010

Company Law Settlement Scheme, 2010: File your late annual returns now and pay only filing fees and 25 percent of actual additional fee payable.

The Government of India, Ministry of Corporate Affairs, New Delhi has launched "Company Law Settlement Scheme, 2010" where government will be condoning the delay in filing annual returns with the Registrar and granting immunity from prosecution by charging additional fee of 25 percent of actual additional fee payable for filing belated documents under the Companies Act, 1956 and the rules made there under.

So if you own and operate a company in India and have not filed your returns on time for any reason, you can take benefit of this scheme by paying the actual filing fees along with an additional fee of 25 percent of the actual additional fee. This scheme is open till 31st August, 2010 after which the Registrars of companies have been instructed to take appropriate action against the defaulting companies.

See the official text Below

( Source: Ministry of Corporate Affairs, New Delhi)

General Circular No. 1 /2010

F. No. 2/7/2010-CL V

Government of India

Ministry of Corporate Affairs

5th Floor, A Wing, Shastri Bhavan,

Dr. R.P. Road, New Delhi,

Dated the 26th May, 2010

To

All Regional Director,

All Registrars of Companies.

Subject: Company Law Settlement Scheme, 2010

Sir,

It has been observed that a large number of companies are not filing their due documents timely with the Registrar of Companies. Due to this, the records available in the electronic registry are not updated and thereby are not available to the stakeholders for inspection. Further, due to not filing the documents on time, companies are burdened with additional fee and facing the prosecutions also.

2. There are many companies, who have also not increased their paid up capital up to the threshold limit provided in sub-section (3) and sub-section (4) of Section 3 of the Companies Act, 1956.

3. In order to give an opportunity to the defaulting companies to enable them to make their default good by filing belated documents and to become a regular compliant in future, the Ministry, in exercise of the powers under Section 611(2) and 637B (b) of the Companies Act, 1956 has decided to introduce a Scheme namely, “Company Law Settlement Scheme, 2010,” condoning the delay in filing documents with the Registrar, granting immunity from prosecution and charging additional fee of 25 percent of actual additional fee payable for filing belated documents under the Companies Act, 1956 and the rules made there under. The details of the Scheme are as under:-

(i) The scheme shall come into force on the 30th May, 2010 and shall remain in force up to 31st August, 2010.

(ii) Definitions - In this Scheme, unless the context otherwise requires, -

(a) "Act" means the Companies Act, 1956 (1 of 1956);

(b) "company" means a company registered under the Companies Act, 1956 and a foreign company falling under section 591 of the Act;

(c) "defaulting company” means a company registered under the Companies Act, 1956 and a foreign company falling under section 591 of the Act, which has made a default in filing of documents on the due date(s) specified under the Companies Act, 1956 and rules made there under;

(d) "designated authority" means the Registrar of Companies having jurisdiction over the registered office of the company.

(iii) Applicability: - Any “defaulting company” is permitted to file belated documents in accordance with the provisions of this Scheme:

Provided that any defaulting private company or public company which has not increased its paid capital up to the threshold limit of rupees one lakh and rupees five lakh respectively as provided in sub section (3) and (4) of section 3 of the Companies Act, 1956, as the case may be, shall first file its documents to increase their paid up capital up to the threshold limit under the scheme and thereafter would be allowed to file other belated documents;

(iv) Manner of payment of fees and additional fee on filing belated document for seeking immunity under the Scheme - The defaulting company shall pay statutory filing fees as prescribed under the Companies Act and rules made there under along with an additional

fee of 25 percent of the actual additional fee standardised under sub- section (2) of Section 611 of the Companies Act, 1956, payable on the date of filing of each belated document;

(v) Withdrawal of appeal against prosecution launched for the offences- If the defaulting company has filed any appeal against any notice issued or complaint filed before the competent court for violation of the provisions under the Act in respect of which application is made under this Scheme, the applicant shall before filing an application for issue of immunity certificate, withdraw the appeal and furnish the proof of such withdrawal along with the application;

(vi) Application for issue of immunity in respect of document(s) filed under the scheme - The application for seeking immunity in respect of belated documents filed under the Scheme may be made electronically in the Form annexed, after closure of Scheme and after the document(s) are taken on file, or on record or approved by the Registrar of Companies as the case may be, but not after the expiry of six months from the date of closure of the Scheme. There shall not be any fee payable on this Form;

(vii) Order by designated authority granting immunity from the penalty and prosecution - The designated authority shall consider the application and upon being satisfied shall grant the immunity certificate in respect of documents filed in the Scheme;

(viii) Scheme not to apply to certain documents - (a) This Scheme shall not apply to the filing of documents for incorporation or establishment of place of business in India or where specific order for condonation of delay or prior approval under the provisions of the Companies Act, 1956 is to be obtained from the Company Law Board or the Central Government or Court or any other Competent Authority is required;

(b) This Scheme shall not apply to companies against which action under sub-section (5) of section 560 of the Act has been initiated by the Registrar of Companies;

(ix) After granting the immunity, the Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s);

4. At the conclusion of the Scheme, the Registrar shall take necessary action under the Companies Act, 1956 against the companies who have not availed this Scheme and are in default in filing of documents in a timely manner.

Yours faithfully,

Sd/-

(P.K. Malhotra)

Joint Director

Encl: As above