UAE Ministry of Labour begin levying fine of Dh1,000 from companies fail to issue or renew electronic labour cards of employees

 Abu Dhabi: The Ministry of Labour will begin levying a fine of Dh1,000 from companies that fail to issue or renew electronic labour cards of their employees from Sunday.
The move is in line with the Cabinet resolution over violations of labour laws.

However, Humaid bin Dimas Al Suwaidi, assistant under-secretary of the Ministry for Labour Affairs, said employers will be given a grace period — January 4 to June 30, 2015 — to adjust their status.

Employers who failed to issue or renew electronic Labour cards or “Plastic Labour Cards” for their employees will have to pay a maximum of Dh1,000 for each labour card that has not been issued or renewed by December 31, 2014.
He revealed that fines have so far reached a total amount of Dh2.85 billion, which will be reduced to Dh100 million as per the grace period given to employers for settlement.
The period covers the electronic card applications not issued or renewed until the end of this December.He urged employers to benefit from the grace period to settle the status of their workers and apply for the issuance and renewal of their workers’ e-labour cards.
Al Suwaidi said about 100,000 applications were submitted by 40,000 firms, representing 13 per cent of the total firms registered by the ministry.
“This confirms the government’s keenness to support employers and motivate them to settle those fines, which is a tool used by the ministry to control and regulate the labour market and provide protection to the workers,” Al Suwaidi added.
He explained that there are thousands of cards, some of which have fines reaching Dh53,000.
“Now that large fines have been reduced to only a Dh1,000, it is an opportunity for all employers and business owners to settle those fines and remove any sorts of restrictions in their records at the ministry,” Humaid said.
Furthermore, offenders during the grace period, will be stopped from obtaining all kinds of labour permits until they settle all the above mentioned fines. “Starting July 2015, employers will be asked to pay the Dh1,000 fine per card in addition to another Dh500 for each month of delay,” Bin Deemas pointed.

Al Suwaidi stated that the Ministry of Labour, starting from January 4, 2015, will fine employers “Dh500 per month if they fail to provide employment contracts to the ministry within a 60-day period starting from the entry of the employee into the country.”

He explained that this decision represents the keenness of the UAE to protect labourers’ rights and ensure a stable relationship between employer and employee with full transparency.
He said that the period of 60 days is sufficient for the employer to sign a contract with his new employee through Tas’heel service centres to properly document this, and any excuses of delay will not be accepted.

Remittance by NRIs to India draws service tax

Remittances by non-resident Indians may become marginally costlier with the Central Board of Excise and Customs clarifying that commission or fee charged by agent based in India from the overseas agent will attract service tax. The apex indirect taxes body has issued a circular to clear the air regarding taxation of remittances and services provided by intermediaries. The board has said no service tax will be payable per se on the amount of foreign currency remitted to India from overseas. However, an Indian bank or other entity acting as an agent to money transfer service operator, facilitating in the delivery of the remittance to the beneficiary in India for a fee will be liable to tax.

The board had issued a circular in July, 2012, after the country switched to negative list regime, wherein it had said there will be no service tax per se on the foreign exchange remitted to India from outside for the reason that money does not constitute a service and that conversion charges or fee levied for sending such money would also not be liable to service tax as the person sending money and the company conducting the remittance are both located outside India.

The latest circular comes after field formations highlighted that foreign money transfer service operators conducting remittances to beneficiaries in India had appointed Indian Banks and financial entities as their agents in India. 

Circular No. 180/06/2014 – ST
F. No 354/105/2012-TRU (Pt.)
Government of India, Ministry of Finance, Department of Revenue
Central Board of Excise and Customs, Tax Research Unit
                                                                                                  Room No 153, North Block, New Delhi
                                                                                                  Dated 14th October, 2014

To
Chief Commissioner of Customs and Central Excise (All)
Chief Commissioner of Central Excise & Service Tax (All)
Director General of Service Tax
Director General of Central Excise Intelligence
Director General of Audit
Commissioner of Customs and Central Excise (All)
Commissioner of Central Excise and Service Tax (All)
Commissioner of Service Tax (All)
Madam/Sir,
Subject: -  Levy of service tax on activities involved in relation to inward remittances from abroad to beneficiaries in India through MTSOs- reg.
 
            Vide circular No. 163/14/2012–ST, dated 10th July, 2012, on the issue of  levy of service tax on the activities involved in the inward remittance it was clarified that there is no service tax per se on the  foreign exchange remitted  to India from outside for the reason that money does not constitute a service and that conversion charges or fee levied for sending such money would also not be liable to service tax as the person sending money and the company conducting the remittance  are both located outside India. It was also clarified that the Indian bank or financial institution who provides service to the foreign bank or any other entity is not liable to service tax as the place of provision of service shall be the location of the recipient of service. This clarification covers the scenario where the Indian bank or financial institution provides services on principal to principal basis to the foreign bank/entity, on its own account, and thus the service is covered by the general rule, i.e. rule 3 of the Place of Provision of Service Rules, 2012.

2.         However, subsequently, it had been brought to the notice of the Board that the foreign money transfer service operator (MTSO), conducting remittances to beneficiaries in India, have appointed Indian Banks/financial entities as their agents in India who provide agency /representation service to such MTSO for furtherance of their service to a beneficiary in India. The agents are paid a commission or fee by the MTSO for their services. The entire sequence of transactions in remittances of money from overseas through the MTSO route is as under:

Step 1: Remitter located outside India (say ‘A’) approaches a Money Transfer Service Operator (MTSO)/bank (say B) located outside India for remitting the money to a beneficiary in India; ‘B’ charges a fee from ‘A’.

Step 2:  ‘B’ avails the services of an Indian entity (agent) (say ‘C’) for delivery of money to the ultimate recipient of money in India (say ‘E’);  ‘C’ is paid a commission/fee by ‘B’.

Step 3: ‘C’ may avail service of a sub-agent (D). ‘D’ charges fee/commission from ‘C’.

Step 4: ‘C’ or ‘D’, as the case may be, delivers the money to ‘E’ and may charge a fee from ‘E’.

 3.         Clarifications have been sought as to whether such agents (referred in Step 2 above) would fall in the category of intermediary, and if so, whether service tax would be leviable on the commission/fee amount charged by such agents. Clarifications have also been sought as to whether the services provided by sub agent (referred in step 3 & 4 above) are leviable to service tax and on certain other related issues.

4.         The issues discussed above have been examined and it is clarified as follows,-

1
Whether service tax is payable on remittance received in India from abroad?
 No service tax is payable per se on the amount of foreign currency remitted to India from overseas. As the remittance comprises money, it does not in itself constitute any service in terms of the definition of ‘service’ as contained in clause (44) of section 65B of the Finance Act 1994.
2
Whether the service of an agent or the representation service provided by an Indian entity/ bank to a foreign money transfer service operator (MTSO) in relation to money transfer falls in the category of intermediary service?  

Yes. The Indian bank or other entity acting as an agent to MTSO in relation to money transfer, facilitates in the delivery of the remittance to the beneficiary in India. In performing this service, the Indian Bank/entity facilitates the provision of Money transfer Service by the MTSO to a beneficiary in India.  For their service, agent receives commission or fee. Hence, the agent falls in the category of intermediary as defined in rule 2(f) of the Place of Provision of Service Rules, 2012.
3  
Whether service tax is leviable on the service provided, as mentioned in point 2 above, by an intermediary/agent located in India (in taxable territory) to MTSOs located outside India?
   Service provided by an intermediary is covered by rule 9 (c) of the Place of Provision of Service Rules, 2012. As per this rule, the place of provision of service is the location of service provider. Hence, service provided by an agent, located in India (in taxable territory), to MTSO is liable to service tax.

The value of intermediary service provided by the agent to MTSO is the commission or fee or any similar amount, by whatever name called, received by it from MTSO and service tax is payable on such commission or fee.
4.
 Whether service tax would apply on the amount charged separately, if any, by the Indian bank/entity/agent/sub-agent from the person who receives remittance in the taxable territory, for the service provided by such Indian bank/entity/agent/sub-agent
    Yes. As the service is provided by Indian bank/entity/agent/sub-agent to a person located in taxable territory, the Place of Provision is in the taxable territory. Therefore, service tax is payable on amount charged separately, if any.
5.
 Whether service tax would apply on the services provided by way of currency conversion by a bank /entity located in India (in the taxable territory) to the recipient of remittance in India?
 
Any activity of money changing comprises an independent taxable activity. Therefore, service tax applies on currency conversion in such cases in terms of the Service Tax (Determination of Value) Rules. Service provider has an option to pay service tax at prescribed rates in terms of Rule 6(7B) of the Service Tax Rules 1994.
6.
  Whether services provided by sub-agents to such Indian Bank/entity located in the taxable territory in relation to money transfer is leviable to service tax?
  Sub-agents also fall in the category of intermediary. Therefore, service tax is payable on commission received by sub-agents from Indian bank/entity.

 5.         Accordingly, Circular No. 163/14/2012-ST, dated 10.7.2012 stands superceded.

6.         Trade Notice/Public Notice may be issued accordingly.

 7.        Please acknowledge the receipt of this circular. Hindi version to follow.


Yours sincerely,
                                                                                                (Dr. Abhishek Chandra Gupta)

Technical Officer, TRU

Tel: 011-2309 2037

Short-term UAE visit visa via smartphone

The Ministry of Interior (MoI) has launched three new procedural services via smartphones, which include issuance of short-term visit visas (for 30 days), renewal of citizens’ passports, and issuance of Certificates of Good Conduct (Criminal Status Certificates).

The new services are launched under the slogan 'One Application... Multiple Services' and embody the UAE Smart Government initiative.

Major-General Dr Ahmed Nasser Al Raisi, Head of the e-Services and Smart Applications Team at the MoI, explained that the new short-term visa issuance service saves time for citizens and residents alike, and enables individuals to apply for a 30-day visa through their smartphones, without the hassle of visiting the General Directorate of Residency and Foreign Affairs at the Naturalisation Residency and Port Sector.

Once the visa is issued, it will be delivered to the applicants via accredited entities designated by the MoI.

He also noted that the Civil Defense informatics services provide individuals and institutions with the necessary information about compliance certificates, as well as executive approvals for architectural, gas, and decoration.

More new services

Maj-Gen Dr Al Raisi announced that the MoI is planning to launch a new bundle of services for Traffic, Naturalisation, Residency, and Civil Defense sectors; as well as other services in the upcoming period via the UAE - MoI smartphones apps.

“The MoI has already initiated the necessary executive procedures to expand these services and make them accessible to all citizens and residents,” he said.

Maj-Gen Dr Al Raisi said, “A Smart Application Centre was established at the Ministry of Interior. It is operated by a highly qualified team of Emirati citizens, to handle all electronic procedures pertaining to these services, and respond to customers’ inquiries via the call center on 8005000.”

He also noted that to date 205,000 individuals are using the applications that the MoI has launched early this year, with an average 54,000 uses per day. While the number of subscribers via the Emirates ID card amounts to 62,000 users.

MoI platform supports Apple, Android, BlackBerry and Windows compatible smartphones.

It provides an electronic link with a number of partners in the UAE, car inspection and insurance companies; as well as an integrated comprehensive link to the ministry’s website, through the unified login mechanism (username and password) to obtain services from any channel of electronic communication.

Users can register once using the single sign-in feature on the website or through smartphones, and gain access to all of the MoI’s services.

Dh20,000 fine for 'visa trading' firms in UAE

Companies involved in visa trading without any other business will be fined Dh20,000 in line with a federal cabinet decision that was enforced in August.

The penalty could reach Dh50,000 in case the company repeated that offence within a year, according to the new decision issued by the Dubai-based daily Al Bayan.

It said the decision is intended to crack down on “fake” companies which are registered in the UAE but are not involved in any business except trading in visas for expatriates.

“This is a very serious phenomenon as it gives rise to illegal migrants at a time when the country is locked in a drive to end anarchy and ensure stability,” the paper said, quoted an official at the ministry of interior.

Age bar for Indian maids in Saudi Arabia set between 25 and 50 years

The age of Indian domestic workers looking for employment in Saudi Arabia has been set between 25 and 50 years under a new employment agreement finalised by the two countries, media reported.

“Our agreement with India sets the age of the domestic workers coming to the Kingdom [Saudi Arabia] at between 25 and 50 years. If an Indian maid aged 25 agrees to come to Saudi Arabia, the Indian government will not prevent her,” media reported citing Ahmad Al Faheed, Saudi labour ministry undersecretary for international affairs as saying on Sunday.
Al Faheed said that the maids would be subjected to a crash course in their respective states in India before being sent to Saudi Arabia.Such training will be provided by labour agencies in India, he said.

Moreover, Saudi labour agencies are planning to set up offices in India to supervise procedures for the recruitment of maids in Saudi Arabia, including visa, travel, training and other issues, the report said.
Earlier this month, the Saudi-Indian joint committee on labour issues finalised the recruitment contract of domestic workers that consists of several provisions to ensure the authenticity and implementation of the standard employment contract, the recruitment cost, action against recruitment agencies violating laws and a mechanism to prevent cheating by middlemen.

The new recruitment contract is aimed at easing a shortage of domestic workers in the world’s largest oil-exporting country.

The standard employment contract provides minimum wages, working hours, paid holidays and a dispute settlement mechanism.

However, the joint agreement also sets forth specific conditions for incoming domestic workers.

“They should be of good conduct, should not have legal or criminal cases. They should pass a medical check-up, and abide by the laws and traditions during the period of work in the kingdom,” the report said.

Mandatory seat belt for backseat passengers proposed in UAE

The Federal Traffic Council (FTC) proposed in its latest meeting that passengers in a vehicle’s back seat must fasten their seat belts and those who don’t will be considered offenders and will be issued fines.

Maj Gen Mohammad Said Al Zafein, Assistant to the Dubai Police Chief for Operations’ Affairs and Chairman of the Federal Traffic Council, said violators will be fined Dh400 and given four black points.

He explained that the council took the age and height of the passenger into consideration, as well as the view of the policeman, when drafting the proposal which has yet to become law.

Injuries are more severe in accidents where seat belts were not used, Maj Gen Al Zafein said, which is why the Ministry of Interior puts a lot of emphasis on the importance of seat belts.
Maj Gen Al Zafein said international scientific studies have confirmed the role of the seat belt in saving many lives, as they prevent the person from hitting the steering wheel or the dashboard or flying through the windshield due to inertia when the car stops suddenly.

He said studies also showed that the risk of death of a passenger in the front seat with their seat belt on increases if a passenger in the backseat is not wearing their seat belt and vice versa.

“When an accident happens, the car stops but the passengers’ bodies continue to move forward at the same speed that the vehicle was moving. If the vehicle was at 100 km/h before the accident, the passenger will be hurled with a force between 1,000kg-1,500kg if not wearing a seat belt, which can cause death or injury to himself as well as other passengers in the vehicle.”

Last month the FTC announced that they had proposed a new law to fine drivers or their passengers if they put any part of their body out of the vehicle when the vehicle is in motion, as well as a law to punish drivers preoccupied with matters other than driving.

Drinking water without EQM mark not to be allowed in UAE from October 1 20014

The UAE’s mandatory technical regulation for drinking water will take effect on October 1, Dr Rashid Ahmed bin Fahad, Minister of Environment and Water, and Chairman of Emirates Standardization Metrology Authority (Esma), announced on Sunday.

The minister made it clear that any drinking water products which don't comply with the UAE Scheme for Drinking Water, approved by the UAE cabinet, and don't carry the Emirates Quality Mark (conformity mark recognised by Esma) will not be allowed into the market.

The new mechanism, he emphasized, is part of Esma's strategy to regulate and monitor products which have direct impact on health, safety of the consumer and the environment and to promote knowledge-based, competitive economy, sustainable environment and integrated infrastructure.

The minister explained that Esma board  had decided to grant an additional six months till October instead of April 1  for the enforcement of the system in response to requests by water producers and suppliers to allow them distribute their stock of drinking water and other imported products which don't carry the Emirates Quality Mark (EQM) in local market.

The new comprehensive control system aims to improve water standards in terms of quality by unifying control mechanisms on drinking water which include production, processing, packaging and distribution.

Bin Fahad told a forum, organised by Esma for 150 producers, suppliers and bottlers of drinking water and associated products, the grace period was granted to avoid any shortage of bottled water supply in the local market and spare these companies any financial loss.

''The UAE Scheme for Drinking Water, prepared by Esma in partnership with other public and private stakeholders on par with international best practices, defines the technical standard requirements for drinking water, and effective control and monitoring mechanisms regarding production, import and distribution processes,'' the minister said.

The minister noted that 154 companies had registered with the system (98 in 2013 and 56 since the beginning of 2014) of which 93 were local companies accounting for 60.4 per cent of the total companies.

He added that eight out of 14 companies applied for the Emirates Quality Mark had been awarded the registration certificates. The remaining 6 were on the final processes of auditing and conformity assessment.

Hassle-free travel with gold jewellery to India

Indian expats can easily travel in and out of India with gold jewellery if they follow due procedure, the Indian Consulate in Dubai has clarified.

In recent months, Indian expats have been increasingly complaining about ‘harassment’ by customs officials at Indian airports, saying they are forced to pay heavy duties or asked to leave the jewellery behind in lockers.

Under Indian Customs rules, Non Resident Indians must specifically declare gold bullion and gold jewellery exceeding the free allowance, which is capped at Rs50,000 (Dh3,125) for men and Rs100,000 (Dh6,250) for women.

But Indian women, who traditionally wear gold jewellery and visit India frequently for weddings and other occasions, say the allowance is too low. While some still manage to easily pass through customs, others say they are targeted even if they have small quantities of ornaments on them. They claim there is little clarity on what kind of jewellery is dutiable, where and how it must be declared and whether the duty is charged at every entry.

A senior consul at the Indian Consulate told  there is no room for ambiguity. “The rules are simple and clearly defined in the Central Board of Excise and Customs’ Travellers Guide which is freely available online.”

He said that duty is chargeable (at about 10 per cent) only on gold jewellery purchased outside India and if it exceeds the free allowance.

He said all gold jewellery bought in India is exempt from duty if the passenger exiting the home country duly declares it and secures an export certificate at the airport customs desk.

“Once you have this export certificate for a piece of jewellery, you can bring it in or take it out any number of times without any hassle.”

He said the export certificate contains information like the passenger’s name, passport number and details of the gold like weight, description etc.

He said although customs officials at the airports do a valuation of the gold and issue the certificate on the spot, passengers are encouraged to approach them a day or two in advance to ease the rush. They can also present purchase invoices or external valuation certificates issued by government-approved jewellers to obtain the export certificate.

But what if an expat passenger from the UAE is travelling to India with undeclared jewellery bought in India earlier?

“This can be a grey area as you would need to prove to customs authorities that you have indeed purchased the gold in India,” said the consul.

He said free allowance is applicable only to pure gold jewellery. “Jewellery studded with stones does not qualify for free allowance.”

He said: “Bullion up to 1kg per person can be imported into India by paying duty of around 10 per cent. In recent days, officials have been asking for the individual’s documents, source of purchase etc to ensure he/she is not a carrier for others.”
Rate of Duty (CBEC Traveller’s Guide)
Gold bars, other than tola bars, bearing manufacturer or refiner’s engraved serial number and weight expressed in metric units or gold coins: 
6 % Advalorem + 3 % cess


Gold in any other form, including tola bars and ornaments, but excluding ornaments with studded stones 
or pearls : 
10 % Advalorem + 3 % cess

Licence made mandatory soon for teaching in UAE classrooms

Soon teachers will not be permitted to teach in UAE classrooms unless they have a licence, the Undersecretary of the Ministry of Education said Tuesday during Youm Al Wafa’a (Loyalty Day).

“To be permitted to teach in the UAE, teachers will have to have a federal licence that ensures a unified system and teaching standards in schools,” said Marwan Al Sawaleh, Undersecretary at the ministry.

Al Sawaleh said the cabinet ordered the ministry to submit all the suggested procedures and legislations by the end of this year. Once approved and implemented the licence will be required by all teachers in the UAE.

“After the approval the federal licence system will be introduced in phases, to include all teachers under a unified system.”Al Sawaleh made the statement on the sidelines of Youm Al Wafa’a, an annual award ceremony organised by the ministry to honour educational and media supporters as well as retired ministry employees.

Passengers flying to India must self-declare jewellery, bullion and currency exceeding Rs10,000

New Delhi: The Times of India reported that new customs rules to be implemented from next month will require all passengers flying into India to self-declare currency exceeding Rs10,000, gold jewellery and gold bullion in their possession and also be required to declare number of baggage, including hand-carried baggage, while entering into India. 

The Customs Baggage Declaration (Amendment) Regulations of 2014 require an Indian citizen to fill up the immigration form only when he or she goes out of the country. Indian citizens returning from abroad are not required to fill up the form, it added.The rules will kick in on March 1, according to a finance ministry notice dated February 10.

Gold mules, duty fraud

The new form will ask for details different from the immigration card (detachable perforated strip) currently in use, with new fields added to declare dutiable and prohibited goods.

The move is aimed to help airport authorities check customs duty fraud. More importantly, it will keep tabs of gold jewellery and bullion being brought into the country, say officials.he Indian government has raised the ante on passengers who work as gold mules. India, the world’s second-biggest gold importer after China, imposed further controls on domestic gold consumption, raising import duty on bullion from 8 per cent to 10 last year.

The gold import curbs and increased taxes dried up demand after Indians went on a gold buying spree following a slump in world gold prices in April last year – which blew a bigger hole in the country’s current-account deficit and led to rupee’s slide. A lion’s share of India's gold demand comes from imports, denominated in dollars.

Earlier, it was announced that all passengers arriving at the country’s 19 international airports must fill out a new detailed customs form starting January 1, 2014. It was not immediately clear if the January 1 target had been moved to March 1.

Now, the form will ask in-bound passengers to specifically declare prohibited goods and dutiable items, including gold jewellery, gold bullion and Indian currency exceeding the permitted limit.

Indian Customs allow male passengers to carry gold worth up to Rs50,000 (Dh3,400) and female passengers twice as much. The currency limit for Indian citizens is set at Rs7,500 (Dh510). Non-resident Indians can take foreign exchange, but they have to declare amounts exceeding $5,000 or equivalent or when the aggregate value of foreign exchange (banknotes, travellers cheques) exceeds $10,000.

“For the first time, travellers would be asked to specifically declare any prohibited articles, gold jewellery (over free allowance), gold bullion and Indian currency exceeding Rs10,000 in the new form,” the report said, quoting an unnamed official.

Other details

Moreover, the passport number must be mentioned on the new form -- a detail not required earlier -- as well as countries visited by a passenger in the past six days, the report said.

“Old fields like declaration of satellite phone, foreign currency exceeding $5,000 or equivalent, aggregate value of foreign exchange including currency exceeding $10,000 or equivalent, meat, meat products, dairy products, fish or poultry products and seeds, plants, fruits, flowers and other planting material have been retained in the new format,” it said.

Dubai Police radar limit on major roads

As traffic conditions continue to plague daily commuters across Dubai, the statistics paint a grim picture with excessive speeding resulting in 42 traffic accidents, resulting in the deaths of five people and injuring another 35 in 2013 alone.To avoid further confusion, Dubai Police released an updated list of speed limits on major roads across the emirate, along with the radar setting speed that will have you facing a heavy fine if crossed.

Major highways, including Sheikh Mohammed bin Zayed Road, Emirates Road, Dubai-Al Ain Road, Hatta Road, the Lahbab Road and the Aweer-Lahbab Road, all have a maximum speed limit of 120kmph.

The radar setting for these roads have been set at 141kmph, the speed following which your car will be captured on camera.


For a complete list of road speed limits, see the table below.

India to issue visa-on-arrival facility to 180 countries

India tightened entry restrictions in 2009 in the wake of revelations that David Headley, a foreign militant who helped plot the 2008 attacks in Mumbai, regularly stayed in India on long-term tourist visas.
Taking a much appreciated move, Indian officials decided to extend visa-on arrival to tourists of all nations, as it looks to boost tourism. Rajeev Shukla, the Planning Minister, on Wednesday, Feb 5 informed that only eight countries will not be allowed to apply for the same. According to sources, the eight countries are -- Pakistan, Sudan, Afghanistan, Iran, Iraq, Nigeria, Sri Lanka and Somalia. The minister, however, refused to give any details of reason(s) for which the nationals of above mentioned countries will be barred from this facility.
Reports from India say the visa on arrival facility includes citizens of the United Arab Emirates.Most foreigners currently have to wait several weeks before learning whether they will be allowed to enter India after submitting their applications at visa processing centres, a major deterrent for potential visitors.

Under the new scheme, many tourists will be allowed to apply online and then receive the green light within five days, before picking up their visa at the airport on arrival into India.
"We have decided to extend the visa-on-arrival facility to tourists from 180 nations," Planning Minister Rajiv Shukla told reporters in the capital late Wednesday.
"The facility will provide a major boost to the country's tourism sector. This is historic," Shukla said.
Visitors from countries which account for the bulk of India's tourists -- such as the United States, Britain and France -- that have had to go through the time-consuming process of applying in person will be among those to benefit from the changes to regulations.

A meeting of top foreign ministry, tourism and other government officials on Wednesday cleared the way for the changes, which were also recently approved by the India's intelligence agencies.
The changes were first mooted last October, although only for 40 countries.
The government hopes to have the necessary infrastructure in place, including at the country's airports, by October in time for the start of the peak tourist season, local media reported Thursday.
India currently issues visas on arrival to visitors from 11 foreign nations, including Japan, Finland and Indonesia.
Despite its cultural attractions, beaches and mountains, India attracts relatively few foreign holidaymakers -- 6.58 million in 2012, which was about a quarter of Thailand or Malaysia.

UAE to launch mobile phone services for visit visas, domestic help cards and passport renewal

Abu Dhabi: The Ministry of Interior will soon offer services via smart phones to renew passports, 30-day and 90-day visit visas, as well as domestic workers card and entry permits among other services, a senior official said Monday.
Major General Dr. Ahmad Nasser Al Raisi, Director General of Central Operations at Abu Dhabi Police, said the Ministry of Interior launched 169 electronic services through its website, and 30 smart services via mobile phones.
“The services offered in the first phase include vehicle registration renewal, payment of fines through mobile phones and the Ministry of Interior’s website without having to visit the relevant service centre,” Al Raisi said.
He added work was under way to add the passport renewal service for mobile phones in the coming days, in addition to the 30-day (short term visits) and 90-day visit visas (long term visits) service, the domestic workers card and entry permit and other security services.
The Ministry of Interior will be achieving full automation of the 339 services it offers through smart phones or through its website by the end of the year, in addition to the Interactive Voice Response (IVR) and Interactive Messaging Services,” Al Raisi said.

His Highness Sheikh Mohammed issues new decree on Dubai rental increases

In his capacity as the Ruler of Dubai, Vice-President and Prime Minister of the UAE, His Highness Sheikh Mohammed bin Rashid Al Maktoum has issued Decree No. 43 of 2013 concerning the percentages of maximum property rent increase that are allowed upon the renewal of tenancy contracts.

The Decree states that there should not be any rent increase if the rent of the property unit is less than 10 per cent of the average rent of a similar property in the same residential area. If the rent value is between 11 and 20 per cent less than the average rent of a similar property, the maximum rent increase shall be equal to 5 per cent of the rent value.

Additionally, if the rental value of a unit is between 21 and 30 per cent less than the average rent of a similar unit, the maximum rent increase shall be equal to 10 per cent of the rental value.

If the rental value of a property is between 31 and 40 per cent less than the average rental of a similar property, the maximum rent increase shall be equal to 15 per cent of the rental value. A maximum rent increase of 20 per cent is applicable if the rental value of a property unit is less than 40 per cent or more of the average rent of a similar unit.

The Decree applies to landlords from the public and private sectors in the emirate of Dubai including private development areas and free zones.

Article III of the Decree states that the average similar rental value of the property is determined by the Real Estate Regulatory Agency's (Rera) rent index.

The Decree is effective from the date of issuance and shall be published in the Official Gazette.

Health insurance made mandatory for all citizens in Dubai

The long-anticipated health insurance law of Dubai has been approved. From next year, health insurance will be mandatory for all citizens, residents and visitors to Dubai.

His Highness Sheikh Mohammad bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, yesterday approved the Health Insurance Law which stipulates rules and regulations for all parties involved in provision and implementation of health insurance in the emirate.

The fundamental basis of the law is to ensure that every national, resident and visitor in Dubai has essential health insurance coverage and access to essential health services.

“The law is fundamental to ensure smooth delivery of essential health insurance to everyone living in the Emirate, which roughly means over three million people, including nationals and residents with Dubai visas,” said Issa Al Maidoor, Director General of the Dubai Health Authority (DHA).

“It will not be possible to be in the emirate without health insurance. Residents will not get a visa without health insurance,” he added.The law stipulates the roles and responsibilities of all the stakeholders involved in the provision and implementation of health insurance.

While the government will be responsible for health insurance of UAE national, employers will be responsible for all their employees. Domestic workers will not be excluded from this scheme, the DHA emphasised.

Spouses of residents in Dubai must be insured by the sponsor of the spouse and not by the employer of the sponsor.  Visitors to Dubai will get health insurance upon entering the country.  Two million people are currently not insured, according to DHA estimates.

“We would like to thank Sheikh Mohammed and we are committed to fulfill his vision and ensure that every individual in Dubai has access to essential health coverage. Health insurance is a form of security and it is important for every individual to know that if he needs access to healthcare, it is easily available,” said Al Maidoor.Essential health coverage means insurance that ensures access to basic healthcare. At the same time, it should not put a burden on the employer, explained Haidar Al Yousuf, Director of Health Funding at the DHA.

Although emergency  and surgical services and maternity care will be included in the basic package, dentistry will not be on the list of essential health care services. “It is a smartly designed package, providing for basic services. Obviously, it does not include luxury services like cosmetic treatment. It provides the patient with basic needs,” Al Yousuf said.

Preventive health care, which has been the blind spot of health insurance, is not part of the basic package, but this is likely to change with the introduction of this law.

“We definitely encourage more and more preventive care to be provided by insurance companies. As the insurance market becomes more mature, companies are expected to stay with insurance companies longer. Insurance companies may then feel comfortable to provide preventive benefits,” said Al Yousuf.

Insurance companies will be permitted to offer competitive packages, with an expected average price tag of Dh600. Companies may also offer varying co-payment possibilities.  However, there is a minimum requirement for the co-payment cap, explains Al Yousuf.

“The co-payment cap is the maximum amount that the patient pays out of the pocket. Anything above this amount should be paid by the insurance company. The minimum requirements of this cap have been made clear to the insurance companies. Currently, there are more than 40 insurance companies approved by the DHA, and the details of the basic packages have already been communicated with these companies. They will be announcing their packages soon,” the DHA said.

Sustainable health care

The health insurance law rests on two pillars. Apart from providing residents with access to basic healthcare, it develops an effective and sustainable health financing system, says the DHA .

“Depending on the insurance companies’ policies, health care will be available at public as well as private hospitals. Public hospitals will act as private hospitals in providing health care to insured patients. The idea is that patients are not bound by financial considerations when selecting the health care of their choice. They will be able to select the services they find most attractive,” explained Al Yousuf.

“We looked at some of the worlds’ best practices and some regionally applied systems. Of course we want the best health care system. What is unique about this law is that it does not only provide access to health care services, but it also ensures quality of these services.

“All parties will be encouraged to perform slightly better, and the results of this will be published. This transparency will guarantee that the focus of health care is on quality, and not only on price,” he added.

The law will go into effect 60 days after signing of the law, but the implementation is expected to be done over a period of two and a half years in phases.  All parties will be expected to comply with the law within a year.

Though details of insurance responsibilities are to be announced to the public soon, some highlights were announced by the DHA on Tuesday.

Residents

For residents in Dubai, the law stipulates the responsibility of the employer to provide with the minimum of a basic health insurance package based on their current health insurance policy.

In doing so, the company must bear the full costs of the procedure and these costs may not be deducted from the beneficiaries.  It is expected that of the total amount spent on salaries, 1.5 per cent will be spent on the insurance scheme providing the basic health insurance coverage, explained Al Yousuf.

As the insurance coverage is linked to residency, companies are obliged to show sufficient evidence of insurance coverage when residence visa are to be renewed.

The insurance contract may not always cover the same period as the residency period. If it happens that due to this the employee is not covered by health insurance and medical treatment is required, the company must bear the full costs of the healthcare services provided.

UAE nationals

UAE nationals will receive insurance cards to replace the existing Dubai Health Authority (DHA) health cards that provide coverage for healthcare services and preventive care. “They will continue to have access to all current healthcare services provided by the DHA and various private healthcare providers,” said Al Yousuf.

Visitors

On entering Dubai, the visitor will be required to purchase health insurance. “The costs of this health insurance package will be very low, covering only emergency cases,” said Al Yousuf.

The costs of this health insurance coverage will be included in the costs of a visa, explained Al Maidoor. “We do not want to duplicate the procedure, we want to simplify it,” he said.

Violations

Violators of the Health Insurance Law  will be fined a minimum of Dh500 and a maximum of Dh150,000. If the violator repeats the violation in the same year, the fine will be doubled, although the fine may not exceed Dh50,000.  In addition to the fine, the DHA may issue a warning and suspend the company’s health insurance activities within the emirate for not more than two years, or cancel the health insurance permit. The violation may also result in civil or criminal cases.

Rental Dispute Settlement Centre operational today in Dubai

Sultan Butti bin Mejren, Director General, DLD

The Rental Dispute Settlement Centre, the judicial arm of the Dubai Land Department (DLD), begins operations today.

Established by Decree No 26, 2013, issued by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of UAE and Ruler of Dubai, the settlement centre will be based at the department’s head office.Working hours will be 7:30am to 2:30pm and then from 4:30pm, according to the DLD.
Promising speedier resolutions to property disagreements, Sultan Butti bin Mejren, Director General, DLD, said, in a statement, "The opening of the new rental disputes settlement centre is a move aimed at delivering an improved level of services to DLD’s clients.“It will allow us to address disputes occurring from real estate issues in a timely and professional manner consistent with the department’s highest standards.”

“We have already recruited 48 legal experts for the centre,” he had said.The settlement centre has to resolve most of disputes in a maximum of 30 days.

According to the Article 16 of the decree, all committees will have to judge all rental lawsuits within a period not exceeding 30 days from the date of referral of the case to them.The deadline may, however, be extended in accordance with the rules and procedures adopted by the chairman of the Centre in this regard.

Free zones included
The settlement centre will handle all disputes arising between leaseholders and tenants located in the emirate, including its free zones.

Either party is able to file a claim with the centre and can request temporary judgments or interim relief.

They can also appeal decisions made by the centre, which implements its judgments on disputes. Judge Abdul Qader Mousa has been appointed as head of the centre.

"The Rental Disputes Settlement Centre will provide transparent resolution services that have been designed to help all parties to work and live in Dubai in an environment governed by clear rules,” said Mejren.

10 committees

In September, Mejren had said that the centre will have 10 committees, out of which eight will be committees for cases of first instances, and two for appeal.
Earlier judgments passed by Dubai Municipality Rent Committee were final and could not be appealed. The settlement centre allows an appeal only in cases where the value is over Dh100,000.In other cases, all judgments are considered final and not subject to appeal.

Fees

No fee details were given, but Mejren had said earlier the centre will charge 3.5 per cent of the annual rent as fees, similar to the fee charged by Dubai Municipality Rent Committee.

“The fee will remain the same as charged earlier by the Rent Committee for a few months until the centre revises it, if need may be.”
The settlement centre’s scope of practice does not cover rental disputes arising within Dubai’s free zones, which have their own judicial committees, or special courts, to adjudicate in such matters.

Moreover, its authority does not extend to disputes arising from contract leasing, as well as those arising from long-term leases covered by the provisions of Decree No 7 for the year 2006, which pertains to real estate registration in Dubai.

Get Dubai immigration token sitting at home - The General Directorate of Residency and Foreigners Affairs – Dubai and Du signed MOU

No more do you have to wait in long queues at the Department of Immigration and Naturalisation in Dubai as 'smart queuing' will become a reality.

The General Directorate of Residency and Foreigners Affairs – Dubai and Du signed a Memorandum of Understanding (MoU) during the Gitex Technology Week 2013, to develop a smart app, among other areas, to simply a visit to the Directorate.
Smart queuing will be realised through time slots that can be booked by people who plan to visit the Directorate.
In order to get a token, you must select the purpose for which you plan to visit the Department, explained an official. Based on the number of people who have booked a time slot before you, you will be given a timeslot during which you are expected to visit the Department.
The timeslot can only be given on the same day of the request, and a new smart queue will be formed every day.
"This means you should be able to come to the Department on the same day, otherwise you should not book the time slot," said the official.

"We already have a queuing system in place, but the app enables customers to get a token for the queue online," explains Colonel Khalid Nasser Al Razooqi, General Director of the E-services Sector.

"The estimated time slot is based on the calculation of the average time each request is handled with. This is different for each service required, but it is never longer than 3 minutes."

Apart from the token, a general list of requirements will be provided based on the request, which will help customers prepare better for their visit to the Department.

The same information is available on the website, and customers can call the customer service desk to inquire about the required documents if they are not sure, said the Colonel.

“We are proud to support the vision of His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai, by making the General Directorate of Residency and Foreigners Affairs – Dubai a smart establishment, with full m-government accessibility for everyone within the UAE,” said Major General Al Marri, Director of General Directorate of Residency and Foreigners Affairs – Dubai.

“Through this collaboration, we aim to make our customers’ interactions even more streamlined, by rolling out various features that will add to their experience in a positive way.”

Expatriates with traffic fines cannot leave UAE

 Expatriates who have committed road offences will not be allowed to leave the UAE unless they pay all their traffic fines in line with new Interior Ministry measures.

The ministry said the new rules would be later expanded to cover all other financial obligations by expatriates seeking to cancel their visa and leave the country.

“We have linked procedures to cancel visas for expatriates with the payment of all their traffic fines.This step is intended to ensure departing expatriates will pay all their financial dues to the state,” said Brigadier Rashid Sultan Al Khadr, Director, Legal Affairs Department at the Interior Ministry.

“This is just a first step as it affects only individuals who apply for visa cancellation and must now pay their traffic fines. The ministry is also considering expanding this experience in the near future so all visa and immigration procedures will be linked to payment of all dues, including traffic, civil defence and other fees,” he told the Dubai-based Arabic language daily Emarat Al Youm.

Khadr said the computer systems of the traffic police have already been linked to those in all immigration departments in the UAE.“This means no application for visa cancellation by expatriates will be approved and they will not be allowed to leave the UAE unless they pay all their traffic fines.”

He said the new measures are part of an overall plan designed to cope with what he described as “the new developments and changes”, adding they would help bolster security for people and protect the country’s rights.

According to Emarat Al Youm, drivers in the UAE committed around 1.95 million traffic offences in the first quarter of 2013.

Dubai visit visa on your mobile-- DNRD

Dubai’s Naturalisation and Residency Department (DNRD) says its mobile application will soon enable residents to apply for a visa using their mobile phones.

Major-General Mohammed Ahmed Al Marri, Director-General of the Directorate told  that certain services of the DNRD have been operational on the e- platform for quite a while now.

Col Khalid Nasser Al Razouqi, Assistant Director-General of e-Service at DNRD who conducted the briefing about the new mobile application said the app is being implemented in two phases.

In the first phase, users will only be allowed to renew and cancel visas.

The second phase will incorporate more extensive services like incorporating the complete visa application process through the mobile app and thereby totally avoiding the typing centre.

The  app is being developed by Emartech. ‘Naqadi’ the payment gateway built and managed by Emartech will be incorporated into the application to manage visa payments and other fees and charges of DNRD.

According to Al Razouqi the application should be completely up and running incorporating all features by the end of next year.

The pension scheme for Indian workers will be launched soon in the UAE

The UAE launch of a pension scheme being implemented by the Indian Ministry of Overseas Affairs was delayed due to certain technical reasons,
Now the [Indian] ministry has engaged two Indian banks — Bank of Baroda and State Bank of Travancore — to implement the scheme, M.K Lokesh, Indian Ambassador to the UAE, told

The banks have already approached the UAE Central Bank for necessary approval and the scheme will be launched soon, he said.
s Gulf News reported in July 2012, the Government of India planned to open a centre in Dubai to enrol thousands of Indian expatriate workers in its ambitious Pension and Life Insurance Fund (PLIF).

The voluntary scheme offering three important benefits will help skilled and unskilled workers to save money for their old age, to have financial means when they go back home and a life insurance cover for Rs100,000 (Dh6,600) during their work abroad.
About 65 per cent of more than two million Indians in the UAE are blue collar workers.
Workers between the age of 18 and 50 who hold Emigration Clearance Required (ECR) passports are eligible to enrol in the scheme. India issues ECR passports to those who have not passed a school leaving exam (Grade 10).
About 17,602 Indians availed of the recent amnesty declared by the UAE for illegal workers, the envoy said.

A total of 7,923 Indians left the UAE and 9,679 regularised their status according to figures given by the UAE authorities to the Indian Embassy.
Nearly 62,000 illegal workers had availed of the two-month-long amnesty from December 2, 2012 to February 2 this year according to the UAE authorities, which have not revealed nationality-wise figures of beneficiaries. More than 800,000 illegal residents availed of three similar amnesties between 1996 and 2007.

The embassy is still waiting for the approval from the UAE authorities to implement an online attestation of job contracts of Indian workers coming to the UAE , with Emigration Clearance Required – ECR category passports, he said. It will streamline the attestation of job contracts of ECR category workers by preventing fake contracts. The number of workers under ECR category coming to the UAE has witnessed a slight increase during the past four years, he said. Their number dropped from 349,000 in 2008 to 120,000 in 2009. Then it was 130,000 in 2010, 138,000 in 2011 and 141,000 in 2012, the envoy said.
Benefits:

Workers joining the pension scheme will get three benefits – a lump sum amount from the resettlement and rehabilitation fund when they go back home, monthly old age pension after the age of 60 and a free of cost life insurance cover during their stay abroad.

The workers under Emigration Clearance Required category [those who have not passed matriculation] have to open a bank account and co-contribute a minimum Rs4,000 (Dh 244) per annum towards the resettlement and rehabilitation fund.

The Indian Government will provide a contribution of up to Rs2,000 (Dh132) per year for male workers and Rs3,000 (Dh198) per year for women workers for up to either five years or until the worker returns home, whichever is earlier.

A worker contributing a minimum of Rs4,000 (Dh 244) per annum for at least five years towards this fund, could get at least Rs30,000 (Dh1,980) after going back home, according to the Ministry of Overseas Indian Affairs. The money from the fund will be invested in mutual funds so the benefit may go up depending on the profits earned from mutual funds.

The old age pension fund requires a contribution of between Rs1,000 (Dh66) and Rs12,000 (Dh792) per annum. They will derive corresponding benefits when they go back home and during their old age.

The worker will get a monthly pension when he/she is 60 years old. The amount of monthly pension depends on the amount deposited in the pension fund. The worker will get at least 9 to 10 per cent profit based on current estimates.

In this case also, the benefit may go up in proportion to the profits from the mutual funds, according to the Indian ministry.