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. 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 »
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 »
Jun. 25 – India will exempt tax on services that deal with low-cost housing construction, power distribution, services within ports and airports, selected tournaments and championships, foreign travelers in transit and those flying to and from the northeast starting July 1.
“Repair of ships or boats or vessels belonging to the Government of India, including the Navy or the Coast Guard or the Customs, but does not include government owned public sector undertakings,” the Central Board of Excise and Customs (CBEC) said as to the services exempted from tax. Read the rest of this entry »
Jun. 23 - India is considering lifting its foreign direct investment cap on the insurance sector from 26 percent to 49 percent according to Finance Minister Pranab Mukherjee.
“We have committed to allow 49 percent and the necessary legislation is pending before the House, as the leg process will be completed it will be done…in a year or so.” Pranab Mukherjee told NDTV during an Indo-U.S. CEO forum in Washington. Read the rest of this entry »
Jun. 22 – The country’s bio-tech industry grew by 17 percent to US$3 billion during the 2009-10 financial year compared to the previous period, with the bio-pharma market contributing to the majority of growth.
According to a survey conducted by the Association of Biotechnology-led Enterprises and the BioSpectrum journal, the bio-pharma made up 60 percent of the industry’s growth followed by bio-services and bio-agri. Biotechnology companies located in western India were the industry’s top performers with revenues comprising 46 percent of total bio-tech market value. The survey projects that the industry will continue to grow with future annual growth forecasted to reach 20 percent. Read the rest of this entry »
By Vikas Srivastava
MUMBAI, Jun. 14 - The Constitution of India provides that the central government as well as the state government be vested the power to enact and amend rules and regulations related to labor policy in the country.
Regulations that address labor and safety in mines and oil fields and Union agencies and institutions for vocational are governed by the central government whereas laws and regulations on trade unions; industrial and labor disputes are governed by central as well as state laws. Read the rest of this entry »
Apr. 23 - Ford plans to expand production of the Figo compact car in its Chennai plant in response to strong consumer demand.
The American car company is planning to add 700 more people to its workforce. “We do need to ramp up production to cope with the increasing demand for Figo and so we are starting a second shift from the end of June at our Chennai plant. This will increase our production capacity of the small car by 30-40 percent,” Ford India President and Managing Director Michael Boneham said in a statement. Read the rest of this entry »
Mar. 19 - The Indian government has extended the five-year tax holiday for hotel projects from March 31 to July 31 in an effort to stimulate development in the industry prior to the Commonwealth Games in October.
The five-year tax holiday previously applied to hotels finished and operational from April 1, 2007 to March 31, 2010 covering two, three and four-star category hotels and convention centers in the National Capital Territory of Delhi and the districts of Faridabad, Gurgaon, Gautam Budh Nagar and Ghaziabad. The new extended tax holiday scheme will continue to offer the special tax discount rates in the next five years for hotels finished by the July 31 deadline under Section 80-ID of the Income Tax Act.
Read the rest of this entry »
Feb. 18 - The Competition Commission of India (CCI) is considering a new scheme that will provide pre-merger consultation for companies mulling over potential mergers and acquisition.
This will allow companies the opportunity to seek competition regulator’s views prior to filing proposals and cut down on approval times and delay that sometimes can take as long as 210 days. “We are considering having pre-merger consultations clause for vetting mergers under sections 5 and 6 of the Competition Act,” CCI chairman Dhanendra Kumar said in a statement during the Indo-U.S. Economic Summit held in New Delhi. Read the rest of this entry »
