Legal & Regulatory
By Bradley Dunseith
On May 24, India’s Union Cabinet effectively eliminated the foreign investment promotion board (FIPB) – established 25 years ago as a single-window clearance for all foreign direct investment (FDI).
India’s regulatory landscape has undergone some major overhauls since the FIPB was first created: between 91 and 95 percent of FDI now comes through the ‘automatic route’ while only 11 sectors still require government approval.
In this article, we explain the new regulatory landscape for foreign investment that the FIPB previously governed.
Relaxation in filing GST returns till September 2017
The GST Council meeting on June 18, 2017 delivered key resolutions ahead of the GST launch at midnight of June 30. The Council opted for a relaxation in return filing until September, meaning no late fees or penalties will be levied in the interim period.
FIPB formally abolished by federal government
On May 24, the Union Cabinet finalized the end of the Foreign Investment Promotion Board (FIPB). Introduced as a foreign direct investment (FDI) reform in the Union Budget for 2017-18, scrapping the FIPB will ease greater foreign investments inflows by reducing bureaucratic transactions.
The FIPB was an inter-ministerial body under the Department of Economic Affairs in the finance ministry. It was responsible for processing and recommending FDI proposals if the investment amount exceeded US$466.27 million (Rs 3,000 crore).
By Vasundhara Rastogi
India’s geographical location is central to key international trade routes across the Indian Ocean between Europe and Asia. This offers India a great opportunity to grow into a maritime hub.
India has a long coastline of over 7,500 km, which houses its 12 major ports and about 200 non-major ports. These ports serve as the country’s gateways to global trade, and cater to about 95 percent of India’s total foreign trade (by volume).
By Vasundhara Rastogi
Protecting and managing intellectual property rights (IPR) is the first step for any business seeking to establish its presence in India, and must be incorporated as an integral part of the business asset growth strategy.
Having a distinguished intellectual property can set your business apart from competitors, and become an essential part of your marketing. An intellectual property can also be sold or licensed to generate revenues for you or your business.
Final GST schedule released for goods and services
The GST Council, which is the federal agency regulating the new indirect tax structure in India – the Goods and Services Tax (GST) – published a detailed list of tax rates late last week.
The final GST schedule aligns 1,211 goods in six separate categories; barring the exemption list, there are five slabs of taxation. These fall under 5 percent, 12 percent, 18 percent, 28 percent, and 28 percent plus cess. For services, the tax structure is similar. Further, all e-commerce vendors will be liable to pay one percent tax collected at source under the GST regime.
By Bradley Dunseith
India offers enormous potential for foreign franchisors who tailor their brand to fit into the country’s dynamic consumer market. India’s huge market has created a space for competitive franchises to thrive while rising incomes have enlarged the demand for foreign brands.
To succeed in the Indian market, franchisors will need a robust understanding of the country’s regulatory structure due to the absence of comprehensive franchise-centric legislation.
In this article, we explain the entry strategies for foreign franchises interested in establishing an Indian presence. We then highlight the legal precautions necessary for such companies to secure their position in the Indian market.
Tax department launches online filing of tax returns
Filing tax returns online will be the norm in India for the Assessment Year (AY) 2017-18 onwards as the Income Tax department launched its e-filing portal in May. This online portal facility can be accessed for filing all categories of Income Tax Returns (ITRs). This year, the Central Board of Direct Taxes (CBDT) launched all the seven ITR forms for AY 2017-18 on March 31. Income tax returns need to be filed by July 31 every year.