Aug. 30 - Special economic zone incentives will be exempted from the new direct tax code (DTC) until 2014 although there is a proposed 20 percent minimum alternative tax based on a version approved by the Cabinet last Thursday.
Despite the assurance, investors are still nervous about the changes and developers are unsure whether zones will attract enough investors despite the changes made to the DTC. The bill may still undergo revisions when it reaches Parliament for approval.
Aug. 27 - India’s Consumer Affairs Ministry is recommending that 49 percent foreign direct investment be allowed in the multi-retail industry with an emphasis on developing back-end operations.
The ministry said that more foreign investment should be allowed on the condition that a model law be in place to help shield small businesses. Moreover, the majority of foreign investment in multi-brand retail should focus on improving back-end infrastructure, in addition to agricultural processing and logistics. Read the rest of this entry »
Aug. 25 – A rural business process outsourcing (BPO) policy was announced last Wednesday by the Tamil Nadu government that would give economic incentives for BPOs opening in rural areas.
“Tamil Nadu being a major Information and Communication Technology (ICT) Hub and with the ICT industry now expanding to Tier II, Tier III cities, and towns and indeed into villages in Tamil Nadu, it is indispensable to have a comprehensive Rural BPO policy to increase employment in the rural areas of state,” the government said in a statement. Read the rest of this entry »
Aug. 19 - One of India’s top ranking business schools said in a report that the government should give local businesses five years to develop before opening multi-brand retail to foreign direct investment.
The report made by Birla Institute of Management Technology (BIMTECH) said “…a breathing space of five years till 2015 should be given to the unorganized retail sector so as to enable this crucial sector to re-orient its strategy and be competent to face competition from foreign investment.” Read the rest of this entry »
Aug. 12 - The Reserve Bank of India has released a discussion paper that talks about possibly opening the private banking sector to new players.
“The RBI clearly expresses its intent to expand the banking reach in the country while focusing on maintaining financial stability,” said CII director-general Chandrajit Banerjee. This will make bank capital requirements and intent now open to other competition. Read the rest of this entry »
Aug. 6 – Japanese conglomerate Mitsui and Co. Ltd. and Indian industrial conglomerate Ruchi Group have announced plans to establish a special economic zone that will include a US$1 billion steel complex in western India’s Tagdi village in Kutch, Gujarat.
The joint venture, Indian Steel Corp. Ltd. (ISC), aims to expand steel service centers around the country. ISC already has 50 hectares of land for the project in Kutch and is waiting for the local government to make 950 hectares available for development. Read the rest of this entry »
Aug. 4 – A recent Supreme Court decision has ruled that payment made in kind will also be subject to taxes in India.
This was based on an appeal made in court by local company Kanchanganga Sea Foods regarding its payment in kind to Hong Kong-based company Eastwide Shipping for lending the use of vessels and personnel. The Indian company gave Eastwide 85 percent of fish catch as payment. It was able to get its foreign partner official permission to fish in an Indian economic zone. Read the rest of this entry »
Aug. 4 - The New Delhi government is proposing that diesel, petrol, compressed natural gas and health care services be excluded under India’s new Goods and Services Tax (GST) scheduled to be implemented next year.
“Several other states have also supported our view to keep petroleum products and CNG out of the ambit of GST. We will also request for excluding healthcare services from GST,” said Delhi Finance Minister A.K. Walia. Read the rest of this entry »
Aug. 2 - India’s Central Board of Direct Taxes announced it would extend income tax return filing from July 31 to August 4.
All returns, whether done electronically or not, as long as it is given on or before August 4 will be considered on time. The extension was announced after reports that the e-filing computer system encountered technical difficulties and stormy weather prevented some taxpayers from filing their returns. Read the rest of this entry »
Aug. 2 - The Telecom Regulatory Authority of India (TRAI) is slated to release its final consultation paper on the country’s plan to change from analog to digital broadcast signals by December 2013 next week.
“All the industry players have welcomed the regulation by TRAI on digitalization and we are expecting to release the final consultation paper on the same by next week,” TRAI Chairman J. S. Sarma said during a Confederation of Indian Industry conference last Friday. Read the rest of this entry »
Dezan Shira & Associates provide a range of services for companies looking to undertake foreign direct investment into Asia, These include corporate establishment, accounting, tax, payroll, audit and due diligence. To learn more about the firm,
please contact one of our specialists at india@dezshira.com, download our corporate brochure or visit at us www.dezshira.com
