Jul. 15 - The transfer of goods to special economic zones from outside suppliers are not subject to export duty said a Supreme Court ruling made on Tuesday.
The court denied an appeal from the national government that defined any transfer of goods from an area outside the zone referred to as a domestic tariff areas to an SEZ as an export. Read the rest of this entry »
Jul. 14 - Companies are required to file their income tax returns electronically with a digital signature by July 31 according to an announcement made by the Central Board of Direct Taxes (CBDT) last Monday.
Form No ITR-6 must be submitted with digital signatures as opposed to an earlier regulation that accepted forms without digital signatures. Filing returns electronically has also been made compulsory for individuals whose accounts must be audited under the Income Tax Act, with or without a digital signature. Read the rest of this entry »
Jul. 13 – The Department of Industrial Policy and Promotion is studying a proposal to allow foreign real estate companies to repatriate all their profits except the minimum initial investment of US$5 million.
This will apply to foreign companies in a joint venture with a local developer and will effectively limit India’s lock-in period for real estate investment to only apply to the initial US$5 million. It will do away with a previous DIPP rule announced last year that forbade repatriating profits after less than three years of completing capitalization. Read the rest of this entry »
Jul. 13 - The International Monetary Fund raised its 2010 economic forecast for India last Thursday from 8.8 percent to 9.4 percent on the basis of strong corporate profits and financing conditions.
“IMF is an independent body monitoring India. It is a positive signal. If there are similar signals and confirmation from other agencies (monitoring the Indian economy), it will give greater confidence to us about the government’s own assessment of the growth prospects for the year,” said T.C.A. Anant, India’s chief statistician. Read the rest of this entry »
Jul. 12 - The Ministry of Corporate Affairs (MCA) will launch two schemes that will ease the process for companies wanting to formally close a business.
The Easy Exit Scheme 2010 will allow exiting companies to have their names taken out of the Registrar of Companies quicker and at lower costs applicable from May 30 to August 31. Read the rest of this entry »
Jul. 9 - The Delhi High Court has decided in favor of overseas parent company Suzuki Motor Corp. (SMC) saying the company should not pay Maruti Suzuki India (MSIL) for increasing brand recognition for Suzuki via marketing campaigns contrary to a previous decision made by tax authorities.
The court’s decision applies to the assessment year 2004-05 and will serve as an example to clarify rules on transfer pricing issues related to branding for foreign investors. Read the rest of this entry »
Jul. 8 – Authorities will soon begin talks on possibly raising foreign direct investment in local carriers to push New Delhi’s recently opened Terminal 3 into becoming an international aviation hub.
“This issue would be discussed in coming few days. A final view may be taken shortly,” Civil Aviation Minister Praful Patel said in a statement. Foreign investors are technically allowed to invest as much as 49 percent in local carriers but the government has been hesitant to allow this over security concerns. Read the rest of this entry »
Jul. 7 - The Commerce and Industry Ministry released a discussion paper on Tuesday that considers removing barriers hindering foreign investment in the retail sector.
Currently, only 51 percent of foreign direct investment is allowed for single-brand retail while multi-brand retail is limited to cash-and-carry branches. It is now being proposed that large-scale investment in the retail section may help ease the country’s rising inflation rates and make supply chains more efficient. Read the rest of this entry »
Jul. 6 - Indian conglomerate Mahindra & Mahindra is in negotiations to establish a special economic zone (SEZ) targeting the aerospace sector industry.
The 250-acre SEZ will be located near Bangalore International Airport following a public private partnership model. M&M is not new to the aerospace industry. The company opened a component-making facility at Malur in Bangalore recently and also has two aircraft manufacturing companies in Australia. Read the rest of this entry »
Jul. 6 - India is now a member of the Financial Action Task Force (FATF), an inter-governmental body that aims to develop national and international policies to prevent money laundering and terrorist financing.
India was able to comply with the FATF’s 40+9 Recommendations and was admitted as its 34th Country Member in June. The membership will help India establish its goal of becoming a finance hub. Prior to full membership, India had Observer status since 2006. Read the rest of this entry »
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