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In one out of four times, listed entities paid royalties exceeding 20% of their net profits to related parties. And 185 instances of royalty payments were by companies that made losses
Securities and Exchange Board of India (Sebi) said one out of two times listed companies that paid royalty, did not pay dividend or paid more royalty to RPs than dividend paid to other shareholders
The Centre in September had said there were several 'errors apparent in the judgment', and sought a review of the judgement of nine-judge bench
On July 25, a nine-judge constitution bench ruled that the power to tax mineral rights lies with the states and that royalty paid on minerals is not a tax.
Listed companies have seen a sharper rise
As many as 57 per cent of the company's shareholders had rejected the proposal, the company had informed the exchanges
The change will not affect existing franchisees who are maintaining their current footprint or who buy a franchised location from another operator
The SC had held that UDF collected by the DIAL is in the nature of statutory levy and the same would not be taken as consideration against any services
The decision is part of the 64 amendments introduced through the Finance Bill 2023
One of Xiaomi's four frozen bank accounts in India is at Deutsche, according to the court documents
The government has reduced the rate of interest levied on delayed payment of royalty, rent and fee from coal mines, a move that would give a fillip to ease of doing business. The coal ministry has amended the Mineral Concession Rules, 1960 (MCR) aimed at decriminalising its provisions. The Centre has been taking action in a bid to reduce compliances for business and citizens, the coal ministry said in a statement. "To further promote and boost the 'Ease of doing business' policy of the government, the amendment in MCR decriminalised 68 provisions whereas penalty has been reduced for 10 provisions of MCR," it said. MCR relates to the application and grant of mineral concessions such as reconnaissance permit, prospecting license, and mining lease. These concessions are pre-condition for development and operationalisation of mines, necessitating many compliances. For adjusting additional or shortfall royalty, express provision has been brought in. "Further, rate of penal interest
Declining trend in royalty payment unlikely to cushion the fall
Figures are based on percentage of a country's GDP
Reduction in royalty can help them reduce the cash outflow, bring down the vehicle prices and help in boosting their domestic sales, Goyal added
Royalty is paid to a foreign collaborator for the transfer of technology, usage of brand or trademarks
New 5% threshold set by market regulator is unlikely to create discomfort for listed firms
Starting April 1, cos where such payments exceeded 2% of turnover had to obtain shareholder nod