Friday, November 28, 2014
UAE 43rd National Day
Senior Business Consultant at Finmaag Investment Consultants FZC, with a background in law, bringing a unique legal perspective to investment strategy.
India launches e-visa on arrival for UAE and 42 other nations
With the launch of electronic visa (e-visa) facility on Thursday, tourists from 43 countries can apply for Indian visa in four simple steps.The step is aimed at boosting tourism sector and offer hassle-free travel to foreign nationals.
Union Home Minister Rajnath Singh, along with Union Minister of Culture and Tourism Mahesh Sharma launched the Tourist Visa on Arrival (TVOA) service enabled with electronic travel authorisation (ETA) scheme here.
Tourists from countries such as the US, the UAE, Brazil, Cambodia, Kenya, Oman, Singapore, Norway, Thailand, among others can avail this facility."India has a unique advantage in tourism sector owing to its geographical location and that no other country offers such abundance of diversity in weather conditions," said Singh.
This visa will allow entry of the tourists into India within 30 days from the date of approval of ETA and will be valid for 30 days stay in India from the date of arrival in India.
The facility will be extended to other nations in a phased manner.The tourists will be allowed to enter and depart from nine international airports - Bengaluru, Chennai, Kochi, Delhi, Goa, Hyderabad, Kolkata, Mumbai and Thiruvananthapuram.
Tourists availing this facility would be able to go for usual sightseeing and recreational activities. The tourism ministry has included facilities like short duration medical visit and casual business visit with e-visa.Partial list of countries
The TVoA enabled with ETA Scheme will facilitate nationals of 43 countries including:
Union Home Minister Rajnath Singh, along with Union Minister of Culture and Tourism Mahesh Sharma launched the Tourist Visa on Arrival (TVOA) service enabled with electronic travel authorisation (ETA) scheme here.
Tourists from countries such as the US, the UAE, Brazil, Cambodia, Kenya, Oman, Singapore, Norway, Thailand, among others can avail this facility."India has a unique advantage in tourism sector owing to its geographical location and that no other country offers such abundance of diversity in weather conditions," said Singh.
This visa will allow entry of the tourists into India within 30 days from the date of approval of ETA and will be valid for 30 days stay in India from the date of arrival in India.
The facility will be extended to other nations in a phased manner.The tourists will be allowed to enter and depart from nine international airports - Bengaluru, Chennai, Kochi, Delhi, Goa, Hyderabad, Kolkata, Mumbai and Thiruvananthapuram.
Tourists availing this facility would be able to go for usual sightseeing and recreational activities. The tourism ministry has included facilities like short duration medical visit and casual business visit with e-visa.Partial list of countries
The TVoA enabled with ETA Scheme will facilitate nationals of 43 countries including:
- Australia
- Brazil
- Cambodia
- Cook Islands
- Djibouti
- Federated States of Micronesia
- Fiji
- Finland
- Germany
- Indonesia
- Israel
- Japan
- Jordan
- Kenya
- Kingdom of Tongo
- Laos
- Luxembourg
- Mauritius
- Mexico
- Myanmar
- New Zealand
- Niue
- Norway
- Oman
- Palestine
- Papua & New Guinea
- Philippines
- Republic of Kiribati
- Republic of Korea (i.e. South Korea)
- Republic of Marshall Islands
- Republic of Nauru
- Republic of Palau
- Russia
- Samoa
- Singapore
- Solomon Islands
- Thailand
- Tuvalu
- UAE
- Ukraine
- USA
- Vietnam
- Vanuatu
Senior Business Consultant at Finmaag Investment Consultants FZC, with a background in law, bringing a unique legal perspective to investment strategy.
Thursday, November 27, 2014
India begins levying service tax on remittance fee from abroad
India has started levying a service tax on “fees or commission” charged by banks and financial institutions for facilitating remittances from abroad.
This may slightly increase the cost of remittance to India, which will mainly affect the majority of low-income Indian expatriates in the UAE and other Gulf countries who remit money every month to their dependants back home.
However, it will not pose a big burden on expatriates as the tax is imposed only on the “fee or commission charged by banks for facilitating remittances” and not on the actual remittance.
The remittance fee from the UAE to India costs up to Dh20. A part of this amount is paid to the agents in India, which will attract the new service tax. As Gulf News reported on October 16, a circular issued by India’s Central Board of Excise and Customs (CBEC) on October 14 imposed a 12.36 per cent service tax on the “fee or commission” charged for facilitating remittances from abroad. But it was not clear whether the government would start levying it with immediate effect.
The agents in India who facilitate remittances from abroad have recently received notice from the Indian tax authorities to pay the service tax, effective October 15, a senior executive of the remittance service industry told on Tuesday.
“Although the fee or commission charged by agents in India [banks and other financial institutions in India] varies, it may be between Dh5 and Dh10 for remittances from the UAE,” said Y. Sudhir Kumar Shetty, vice chairman of Foreign Exchange and Remittance Group (FERG), an official platform of the companies engaged in the business of money exchange and remittances in the UAE.
Considering the fact that Dh10 is the maximum fee paid to agents in India, the 12.36 per cent tax may go up to Dh1.24 (Rs20.9), Shetty, who is also the COO of UAE Exchange, said.
Although it is a small amount for a single transaction, an agent doing thousands of transactions has to pay a huge amount as tax which may be passed on to the customers, he said.
A prominent financial consultant in India said although the tax is a small amount, it is unjustified as Non Resident Indians (NRIs) deserve incentives for bringing foreign exchange into India.
This may slightly increase the cost of remittance to India, which will mainly affect the majority of low-income Indian expatriates in the UAE and other Gulf countries who remit money every month to their dependants back home.
However, it will not pose a big burden on expatriates as the tax is imposed only on the “fee or commission charged by banks for facilitating remittances” and not on the actual remittance.
The remittance fee from the UAE to India costs up to Dh20. A part of this amount is paid to the agents in India, which will attract the new service tax. As Gulf News reported on October 16, a circular issued by India’s Central Board of Excise and Customs (CBEC) on October 14 imposed a 12.36 per cent service tax on the “fee or commission” charged for facilitating remittances from abroad. But it was not clear whether the government would start levying it with immediate effect.
The agents in India who facilitate remittances from abroad have recently received notice from the Indian tax authorities to pay the service tax, effective October 15, a senior executive of the remittance service industry told on Tuesday.
“Although the fee or commission charged by agents in India [banks and other financial institutions in India] varies, it may be between Dh5 and Dh10 for remittances from the UAE,” said Y. Sudhir Kumar Shetty, vice chairman of Foreign Exchange and Remittance Group (FERG), an official platform of the companies engaged in the business of money exchange and remittances in the UAE.
Considering the fact that Dh10 is the maximum fee paid to agents in India, the 12.36 per cent tax may go up to Dh1.24 (Rs20.9), Shetty, who is also the COO of UAE Exchange, said.
Although it is a small amount for a single transaction, an agent doing thousands of transactions has to pay a huge amount as tax which may be passed on to the customers, he said.
A prominent financial consultant in India said although the tax is a small amount, it is unjustified as Non Resident Indians (NRIs) deserve incentives for bringing foreign exchange into India.
Sunday, November 23, 2014
UAE Ministry of Labour will stop granting work permits to establishments not complying with judicial rulings
Saqr Ghobash, Minister of Labour, recently stated the Ministry of Labour will stop granting work permits to abstaining establishments if found not complying with final judicial rulings.
He pointed out that owners will be granted 30 days ultimatum to resolve court issues to avoid work permits blockage on their other facilities as well.
The suspension decision encompasses various types of work permits including labour recruitment, work permits and work transfers, family visa and temporary work permits and work permits for minors.
Humaid bin Dimas, Assistant Under-Secretary of the Ministry’s Labour Affairs, said, "The ministry has almost completed the data inventory of all abstaining facilities, in collaboration with the departments to ensure the smooth implementation of the resolution and achieve its desired goals."
"The suspension of work permits to abstaining establishments that refrain from implementing the final judicial judgments with regards to the labour issues, comes within the framework of country’s policies that are aimed at strengthening laws and respecting the verdicts issued by the judiciary system."
Bin Dimas noted, "The suspension decision supports the ministry's strategic plan to protect labour rights, and provide all forms of protection for workers, while ensuring the interests of employers are met in accordance with the national legislations, and in conformity with the international conventions and standards."
He pointed out that the decision, which was issued by the Labour Minister, constitutes one of the tools used by the ministry to enforce the adherence to the legislation, adding that the role of the ministry in labour disputes does not stop by just referring complaints not be resolved amicably between both sides to the court, but also contribute to the implementation of the verdicts.
It suspends the work permits for non-compliant establishments through cooperation with the courts.
"The Ministry of Labour’s policy in granting any facility a work permit for foreign manpower is based mainly on the extent of the employer’s commitment to labour laws by providing labour rights protection, providing basic living requirements and foremost pay them on time," bin Dimas said.
He also mentioned that the ministry will lift the suspension on the facilities after obtaining a request by the judge, stating that they have implemented the court verdict
He pointed out that owners will be granted 30 days ultimatum to resolve court issues to avoid work permits blockage on their other facilities as well.
The suspension decision encompasses various types of work permits including labour recruitment, work permits and work transfers, family visa and temporary work permits and work permits for minors.
Humaid bin Dimas, Assistant Under-Secretary of the Ministry’s Labour Affairs, said, "The ministry has almost completed the data inventory of all abstaining facilities, in collaboration with the departments to ensure the smooth implementation of the resolution and achieve its desired goals."
"The suspension of work permits to abstaining establishments that refrain from implementing the final judicial judgments with regards to the labour issues, comes within the framework of country’s policies that are aimed at strengthening laws and respecting the verdicts issued by the judiciary system."
Bin Dimas noted, "The suspension decision supports the ministry's strategic plan to protect labour rights, and provide all forms of protection for workers, while ensuring the interests of employers are met in accordance with the national legislations, and in conformity with the international conventions and standards."
He pointed out that the decision, which was issued by the Labour Minister, constitutes one of the tools used by the ministry to enforce the adherence to the legislation, adding that the role of the ministry in labour disputes does not stop by just referring complaints not be resolved amicably between both sides to the court, but also contribute to the implementation of the verdicts.
It suspends the work permits for non-compliant establishments through cooperation with the courts.
"The Ministry of Labour’s policy in granting any facility a work permit for foreign manpower is based mainly on the extent of the employer’s commitment to labour laws by providing labour rights protection, providing basic living requirements and foremost pay them on time," bin Dimas said.
He also mentioned that the ministry will lift the suspension on the facilities after obtaining a request by the judge, stating that they have implemented the court verdict
Senior Business Consultant at Finmaag Investment Consultants FZC, with a background in law, bringing a unique legal perspective to investment strategy.
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