Corporate Updates – 28-08-2014

Department of Industrial Policy & Promotion:

The Government of India has reviewed the FDI policy with regard toFDI in Defence Sector and amended certain paragraphs of the consolidated FDI Policy Circular 2014. In the I & B sector where the sectoral cap is less then 49%, the company would need to owned and controlled by the resident Indian citizens and Indian Companies, which are owned and controlled by resident Indian citizens. Further the limits for FDI in Defence Industry subject to Industrial Licence under IDRA have been raised from 26% to 49% under Government Route and for above 49% approval of cabinet committee will be required.


The Central Government has issued Guidelines for considering request for exemption from payment of Customs Duty under Section 25(2) of Customs Act, 1962. The Central Government has provided exemptions from payment of duty of customs for import of specified goods for charitable purposes and for specified organizations engaged in relief & rehabilitation In view of the various requests received seeking grant of exemption from time to time and after due consideration to the existing general exemptions, the revised guidelines are issued for considering the pending and future requests for exemption under Section 25(2) of the Customs Act, 1962, in suppression of the previous guidelines.

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