CBDT – Income Tax:
CBDT has clarified that issue relating to the taxation of consortium of contractors formed to implement Engineering, Procurement and Construction (EPC) contracts/turn key projects. It has been a subject matter of dispute between Income-tax Department and the consortium and this has been particularly so in cases where each member of the consortium has a clear and district role in scope of work, responsibilities and liability of the consortium even though each member is jointly and severally liable to the contractee. To bring about consistency in approach while handling cases of consortium, The CBDT has clarified that the attributes of a consortium arrangement which may not be treated as an Association of Persons(AOP). The list of attributes is not exhaustive. There may be additional factors which may justify not treating a consortium as an AOP depending on specific facts and circumstances. The Circular will not apply to cases where all or some of the members of the consortium are Associated Enterprises as defined in section-92A of the Income-tax Act.
SEBI:
Reserve Bank of India has permitted recognised stock exchanges to offer cross currency futures and option contracts in the EUR-USD, GBP-USD and USD-JPY currency pairs. RBI has also permitted recognised stock exchanges to offer currency option contracts in EUR-INR, GBP-INR and JPY-INR currency pairs, in addition to the existing USD-INR pair. SEBI has decided to permit recognized stock exchanges to introduce crosscurrency futures and options contracts on EUR-USD, GBP-USD and USD-JPY. The details in terms of product design, margins and position limits for the specified currency pairs. Further, it has also been decided to permit recognized stock exchanges to introduce currency options on EUR-INR, GBP-INR and JPY-INR currency pairs.
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