Post the Covid pandemic, the Emirates has emerged as one of the most popular spots for destination weddings
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Q: Can foreign companies be listed on Indian stock exchanges? I am told there are some restrictions which are likely to be relaxed. Similar difficulties are faced by Indian companies which wish to list their shares on foreign stock markets. Is there any change expected in respect of this system?
A: There are several leading technology and Internet companies set up by non-resident Indians and others outside India. At present, they are not able to list their securities on Indian stock exchanges; they can only access the Indian capital market through Indian Depository Receipts. A high-level expert committee appointed by the Securities & Exchange Board of India has suggested that the rules and regulations should be changed to allow foreign companies to list their shares directly on Indian stock exchanges. Once this is done, Indian stock markets will become attractive to the technology and Internet sectors.
Likewise, the committee has suggested that Indian companies should be permitted to access the overseas equity market by allowing them to list their shares on overseas bourses. Currently, Indian companies can access the overseas equity market only through American Depository Receipts and Global Depository Receipts. The committee has suggested this measure because if Indian companies can directly list their securities on overseas stock markets, it will enhance their competitiveness by enabling them to derive the same benefits which are currently enjoyed by their international counterparts.
Q: I am a member of a co-operative housing society in Pune. I wanted some information regarding expenditure on repairs incurred by the managing committee, but they are refusing to give me the information. I feel they are trying to cover up financial irregularities. As I am an associate member with my wife, I am not allowed to vote or stand for elections. What remedies do I have in law?
A: Both you and your wife are entitled to inspect free of cost at the society's office all the records, books of account and correspondence which the managing committee has entered into. This can only be done during office hours. The managing committee members are required to furnish all documents requested by the member. If you want copies thereof, a reasonable charge can be levied by the society for such copies. It is now proposed that a fine of Rs25,000 would be levied in case there is any breach of this rule.
An associate member may not have his name on the share certificate unless it is proved that he is a co-owner of the property,. However, an associate member can attend the annual general meeting, but he cannot contest any election. The associate member has the right to vote with the prior written consent of the member whose name is entered in the register of members and on the share certificate.
Q: My daughter who is an expert in making cakes and other pastries is setting up a business in India. She will open a shop to sell these items and also have a restaurant which will be part of the shop. I am told there is some confusion regarding the rate of GST applicable. Can you please clarify?
A: Cakes and pastries are liable to the Goods & Services Tax at the rate of 18 per cent. Therefore, if a shop merely sells these items, this rate would be applicable and your daughter will have to charge 18 per cent GST on sale of these items to a customer who buys and takes away the same.
Recently, the Authority for Advance Rulings has held that if the cakes and pastries are sold to customers in a restaurant, the GST rate applicable would be only 5 per cent, that is, 2.5 per cent being Central GST and 2.5 per cent being State GST. Hence, it is preferable for your daughter to run a restaurant where she will sell the cakes and pastries made by her to customers who visit the restaurant. Even if some of them take away the items, the rate of GST applicable would be just 5 per cent. If she sells the products to walk-in customers who simply come to buy them without using the restaurant, the GST rate would be 18 per cent.
The writer is a practising lawyer specialising in tax and exchange management laws of India. Views expressed are his own and do not reflect the newspaper's policy.
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