Retail

Court Ruling Says Payment in Kind Also Subject to Tax

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. Continue reading →

Posted in Automotive, Bangalore, Chemical & Pharmaceutical, Chennai, Haryana, Location, New Delhi, Retail, Weekly Short Eats | Leave a comment

Income Tax Return Deadline Extended

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. Continue reading →

Posted in Automotive, Finance, Tax and Accounting, IT & Telecom, Legal and Regulatory, Location, Retail | Leave a comment

Special Economic Zone Exports Up by 67 Percent

Jul. 20 – Special economic zone exports in India increased by 67 percent to Rs. 587.5 billion for the first quarter of the financial year compared to the same period last year.

Top special economic zone exports included information technology, IT hardware, petroleum, engineering, leather and garments. Exports from the zones have continued to show strong growth. From 2009 to 2010, SEZ exports increased by more than 122 percent. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Location, Retail, Shipping & Logistics | Leave a comment

Court Ruling Allows Marketing Intangibles Not to be charged to Overseas Parent Company

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. Continue reading →

Posted in Automotive, Economy and Politics, FDI and Foreign Trade, Legal and Regulatory, Location, Retail | Leave a comment

India Opens Debate on Foreign Investment in Retail

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. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Legal and Regulatory, Location, Retail | Leave a comment

New Committee to Evaluate Investment Plans in Sensitive Sectors

Jun. 29 – India is setting up a new committee that will evaluate the sensitive sector investment plans of local companies with foreign shareholders to confirm if a firm is truly Indian-owned.

The panel will study plans to invest in sensitive sectors such as telecommunications, aviation and single-brand retail looking at a company’s shareholding pattern and agreements. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Legal and Regulatory, Location, Retail | Leave a comment

India to Exempt Tax on Selected Services Starting July 1

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. Continue reading →

Posted in Automotive, Chemical & Pharmaceutical, Chennai, Economy and Politics, Finance, Tax and Accounting, IT & Telecom, Legal and Regulatory, Location, Retail, Shipping & Logistics | 2 Comments

India, Europe to Finalize Free Trade Deal

Jun. 24 – India and Europe are set to finalize a free trade deal by the end of this year that aims to boost bilateral trade to US$66 billion in the next five years.

Negotiations begun as early as 2007 but have proceeded slowly due to trade issues presented by both countries. An “in principle” agreement between India and the EU on the FTA was likely to be had by the end of this year said India’s Commerce and Industry Anand Sharma during a Global India Business Meeting held in Madrid. Continue reading →