MEMO - MEMORANDUM REGARDING DELEGATED LEGISLATION - Finance Bill, 2018

MEMORANDUM REGARDING DELEGATED LEGISLATION Sub-clause (II) of c lause 4 of the Bill seeks to insert Explanation 2A to sub-section (1) of section 9 relating to income deemed to accrue or arise in India. Clause (a) of Explanation 2A provides that significant economic presence of a non-resident in India means any transaction in respect of any goods, services or property carried out, if the aggregate of payments arising from such transaction or transactions during the previous year exceeds such amount as may be prescribed. Further, clause (b) to the said Explanation provides that the significant economic presence shall also mean systematic and continuous soliciting of business activities or engaging in interaction with such number of users as may be prescribed. Sub-clause (II) of c lause 9 of the Bill seeks to insert a new clause (via) in section 28 of the Incometax Act relating to profits and gains of business or profession. The said clause (via) provides that the fair market value of inventary as on the date on which it is converted into, or treated as, a capital asset shall be determined in the prescribed manner. Clause 98 of the Bill seeks to amend section 157 of the Customs Act, 1962 to confer power upon the Board, inter alia, to make regulations in respect of, (i) the manner of finalisation of provisional assessment; (ii) the manner of conducting pre-notice consultation; (iii) the circumstances under which and the manner of, issuing supplementary notice; (iv) the form and manner in which an application for advance ruling or appeal shall be made, and the procedure for authority, under Chapter VB; (v) the manner of clearance or removal of imported or export goods; (vi) the document to be furnished in relation to imported goods; (vii) the conditions, restrictions and the manner for deposits in electronic cash ledger, the utilisation and refund therefrom and the manner of maintaining such ledger; (viii) the manner of conducting audit; (ix) the goods for controlled delivery and the manner thereof; and (x) the measures and the simplified or different procedures or documentation for a class of importers or exporters or categories of goods or on the basis of the modes of transport of goods. Clause 116 of the Bill seeks to substitute new sections 3, 3A and 3B of section 3 of the Government Savings Act, 1873. The proposed section 3, inter alia, provides that the Government Savings Banks means State Bank of India or a banking company, or any other company or institution, as the Central Government may specify by notification. The proposed section 3A empowers the Central Government to frame new Savings Schemes or amend or discontinue existing Savings Schemes by notification so as to promote household savings in the country. The proposed section 3B empowers the Central Government to include or omit or amend Savings Schemes specified in the Schedule by notification. Clause 118 of the Bill, inter alia, seeks to amend clause (a) of sub-section (4) of section 4A of the said Act to empower the Central Government to pay the deposit of a deceased person to any person appearing to him to be entitled, to receive it or to administer the estate of the deceased in such manner as may be prescribed. Clause 123 of the Bill seeks to amend section 8 of the said Act to empower the Central Government to prescribe limit of the deposit that may be excluded in computing court fees by notification. Clause 144 of the Bill seeks to insert a new sub-section (2) in section 12A of the Securities Contracts (Regulation) Act, 1956. The said sub-section empowers the Central Government to levy penalty after holding an inquiry in the prescribed manner. Clause 161 of the Bill seeks to amend section 4 of the National Housing Bank Act, 1987. The proposed proviso to sub-section (1) of the said section empowers the Central Government to increase the authorised capital up to two thousand crore rupees or such other amount as may be determined from time to time by notification. Further, the proposed sub-section (3) empowers the Central Government to notify the dates for the payment of the face value of the subscribed capital to the Reserve Bank. Clause 176 of the Bill seeks to insert a new sub-section (4A) in section 11 of the Securities and Exchange Board of India Act, 1992. The said sub-section empowers the Central Government to levy penalty after holding an inquiry in the prescribed manner. Clause 177 of the Bill seeks to insert a new sub-section (2) in section 11B of the said Act. The said sub-section empowers the Central Government to levy penalty after holding an inquiry in the prescribed manner. Clause 189 of the Bill seeks to insert a new sub-section (2) in section 19 of the Depositories Act, 1996. The said sub-section empowers the Central Government to levy penalty after holding an inquiry in the prescribed manner. Sub-clause (f) of clause 203 of the Bill seeks to insert a new sub-section (2) in section 7 of the Central Road Fund Act, 2000. Item (B) of sub-clause (f) empowers the Central Government to amend Schedule II to the Act relating to Category of projects and Infrastructure Sub-Sectors by notification. Further, sub-clause (g) of the said clause proposes to insert a new section 7A to the said Act relating to apportionment of share of fund by Committee. The said section empowers the Central Government to constitute a Committee by notification for finalising the apportionment of the share of the Fund to each of infrastructure projects. Sub-clause (c) of clause 205 of the Bill seeks to insert a proviso to sub-section (8) of section 8 of the Prevention of Money-Laundering Act, 2002. The proposed proviso empowers the Central Government to make rules for considering the claim of the claimant for the purposes of restoration of such properties during the trial of the case. The matters in respect of which the rules or regulations may be made or notifications may be issued in accordance with the provisions of the Bill are matters of procedure and detail and it is not practicable to provide for them in the Bill. The delegation of legislative power is, therefore, of a normal character.