Corporate Updates – 11-09-2014


RBI has issued clarified the term Willful Defaulters and has issued Guidelines on Willful Defaulters for Banks. All banks have been instructed that while dealing with willful default of a single borrowing company in a Group, the banks /FIs should consider the track record of the individual company, with reference to its repayment performance to its lenders. However, in cases where guarantees furnished by the companies within the Group on behalf of the willfully defaulting units are not honoured when invoked by the banks /FIs, such Group companies should also be reckoned as willful defaulters. Further clarification regarding Guarantor, Lender and Unit has also been issued by the RBI.

Income Tax:

The Government of the Republic of India has entered into an DTA agreement with the Royal Government of Bhutan for avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income was signed in India on 4th March, 2013 and entered into force on 17th July, 2014. The Central Government hereby notifies that all the provisions of the Agreement, shall be given effect to in the Union of India.

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