Business

India Allows 100% FDI in Single Brand Retail

Jan. 11 – The Indian government on Tuesday agreed to allow 100 percent foreign ownership in single brand retail stores, paving the way for international businesses such as Starbucks, Ikea and Adidas to operate independently in the country without having to involve local partners. Foreign single brand retailers were previously limited to 51 percent ownership.

Besides the entrance of new companies into the Indian market, the decision is also likely to result in several existing foreign players operating under tie-ups with Indian companies to convert their existing ventures into wholly-owned subsidiaries. Continue reading →

Posted in Business, FDI and Foreign Trade, Featured, Legal and Regulatory, Regulatory Update, Retail | Tagged India Multi-brand Retail, India Retail, India Single-brand Retail | Leave a comment

India Doubles Strength of Foreign Tax Division

Jan. 10 – The Indian government has resolved to double the force of the Finance Ministry’s crucial foreign tax division which handles classified tax-related information between India, tax haven nations, and other countries.

The Ministry recently gave sanction for developing a new unit in the Foreign Tax and Tax Research (FTTR) division under the Central Board of Direct Taxes – which will be headed by a senior Income Tax Department officer and two under-secretary ranking officers. Continue reading →

Posted in Business, Finance, Tax and Accounting | Tagged India Finance Ministry, India Foreign Tax, India Tax | Leave a comment

New Issue of India Briefing: FDI and Manufacturing Electronics in India

Jan. 5 – The new issue of India Briefing Magazine – titled FDI and Manufacturing Electronics in India – is now available for complimentary download on the Asia Briefing Bookstore.

Two years ago, a conference of the State Industry Ministers put forth the goal to increase the contribution of the manufacturing sector to GDP from 16 percent to 25 percent.

The manufacturing sector’s contribution to India’s GDP is considered low when compared to other Asian economies (where manufacturing contributes closer to between 25 percent and 34 percent of GDP) and is seen as not fulfilling its potential. To remedy this, the recently released National Manufacturing Policy has set clear objectives to harness the sector for economic growth, including an emphasis on FDI and foreign technologies. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Featured | Tagged India Briefing Magazine, India Electronics, India FDI, India GDP, India Manufacturing, India National Manufacturing Policy, India National Policy on Electronics | Leave a comment

Amended Rules for Unlisted Public Companies

Dec. 20 – The Central Government of India has recently made amendments to the list of rules for Unlisted Public Companies (known as the “Unlisted Public Companies Preferential Allotment [2011]”). These rules will come into effect on the date of their publication in the Official Gazette.

The previous list of rules [2003] (hereafter referred to as “said rules”) will have the following changes made. Continue reading →

Posted in Business, Legal and Regulatory, Regulatory Update | Tagged India Companies Act 1956, India Securities Allotment, India Unlisted Companies Preferential Allotment, India Unlisted Public Companies | Leave a comment

Tax Collected at Source in India

Dec. 8 – The vendor has to accumulate tax from the payer who has purchased the following items:

Alcoholic liquor for human consumption
Tendu leaves
Timber obtained under a forest lease
Timber obtained by any mode other than under a forest lease
Any other forest produce not being timber or tendu leaves Continue reading →

Posted in Business, Finance, Tax and Accounting, Legal and Regulatory | Tagged India Regulatory, India Tax, India Tax Collected at Source, India TCS | Leave a comment

India’s Updated 2011 Foreign Trade Statistics

Dec. 7 – The value of India’s exports throughout October 2011 were recorded at US$19.87 billion, good for a 10.82 percent increase over the level of US$17.93 billion during October 2010. The increasing value of exports for the period of April-October this fiscal year was US$179.78 billion against US$123.17 billion over the same stage last year, recording growth of 45.96 percent.

India’s monthly imports during October 2011 were recorded at US$39.51 billion, showing a development of 21.72 percent over the level of US$32.46 billion experienced in October last year. The swelling value of imports for the period of April-October this fiscal was US$273.47 billion as against US$208.82 billion over the same period last year, recording an increase of 30.96 percent. Continue reading →

Posted in Business, Economy and Politics, FDI and Foreign Trade, Oil & Petroleum | Tagged India Exports, India FDI, India Foreign Trade, India Imports, India Oil, India Trade Deficit, India Trade Statistics | Leave a comment

Updating of PAN Card Specifications in India

Dec. 1 – The permanent account number (PAN) card, issued by the income tax authorities, is now broadly used in financial transactions and one of the most convenient proofs for identity. Therefore, it is essential to keep the PAN card updated to reflect your current details.

The tax information network, operated by the National Securities Depository Limited (NSDL), provides this update service. This operation permits you to update details such as photograph, address and signature, but not the number itself. The PAN change request form is available online. Continue reading →

Posted in Business, Finance, Tax and Accounting, Legal and Regulatory | Tagged India Income Tax, India PAN, India Regulatory, India Tax, National Securities Depository Limited | Leave a comment

India Issues Approval of FDI in Retail

Nov. 28 – India has accepted overseas companies to own as much as 51 percent of retailers selling more than one brand, paving the way for global companies such as Wal-Mart and Tesco to own stores in the country. Foreign organizations must invest at least US$100 million, half of which has to be spent on developing back-end infrastructure.

India’s Cabinet cleared retail ownership rules, including permitting 100 percent foreign holding in single brand stores. According to the government, India’s decision to permit overseas ownership in retail will create up to 10 million jobs and give farmers better prices. It will be mandatory for foreign retailers to purchase at least 30 percent of the goods sold in the ventures from small industries. Furthermore, stores will only be allowed to operate in 53 cities with populations of 1 million or more, and the government will preserve the first right to buy farm products. Continue reading →