GAAR likely to be postponed to April 2016 in effort to restore investor confidence in the market
Nov. 20 – The Indian government is likely to announce the final draft of the General Anti-Avoidance Rules (GAAR) within the next 10 days, according to the country’s Finance Minister P. Chidambaram.
“A decision has been taken on GAAR,” Chidambaram said. “The draft has been sent to the Prime Minister. Hopefully, the decision will be made public in the next 7-10 days.” Continue reading
Nov. 15 – The new issue of India Briefing Magazine, titled Establishing a Business in India, is out now and is immediately available as a complimentary PDF download on the Asia Briefing Bookstore.
Expats working in India and business people visiting the country for the first time generally agree that India is different; that it stands apart from other developing nations in the business opportunities it presents.
These opportunities are plentiful partly due to India’s sizeable population, which includes a large, young labor pool – the median age of India’s population is only 26.2 – and an attractive consumer base.
Even the challenges of an inferior infrastructure (for which India is well known) present large investment opportunities for foreign-invested enterprises, as the government is prioritizing investment in infrastructure upgrades. Continue reading
Obtaining visas for foreigners and drawing up employment contracts under Indian labor laws
Nov. 14 – Whether your business uses foreign or domestic staff/workers when operating in India, there are a number of legal requirements to pay attention to, from visas for high-skilled workers to drawing up contracts for laborers.
In this article, we look at:
Oct. 15 – Annual audit and compliance procedures are relatively simple for foreign representation entities compared to Indian setup entities.
Foreign Representation Entities
For annual compliance, foreign representation entities are required to file the following:
- Audited balance sheet
- Profit and loss accounts
- Director’s report
- Statutory auditors’ report
- Annual account of holding company
- List of places of business in India Continue reading
By Gunjan Sinha
Oct. 10 – Limited Liability Companies (LLCs) duly incorporated in India with the Company Registrar are governed by provisions of The Companies Act, 1956. The corporate scenario in India is more or less stringent when it comes to the governance of companies. Company management must comprise of a minimum two directors for a private limited company; they are responsible for carrying out business of the company in an efficient, profitable and legal manner. Continue reading
Sept. 19 – The government of India has recently decided to permit foreign airlines to buy stakes of up to 49 percent in local carriers. This has been a highly anticipated policy move that provides for potential support to India’s debt-laden airlines by opening up a fresh source of funding.
Experts from the aviation sector believes that it will benefit only if the sector fundamentals are changed and, no foreign carrier can change that with any amount of investment. Airlines are pessimistically impacted by the sheer raise in airport tariffs (more than a 350 percent hike by Delhi Airport) and increased ground handling charges (40 percent increase announced). Continue reading
Sept. 11 – Reporting of the annual accounts and balance sheet for the financial year ending March 2012 can now be made in Schedule VI format, bringing Indian companies on par with global reporting standards. The reporting in extensible business reporting language (XBRL) is a mandate for companies having a paid up capital base of more than INR50 million for financial reporting. Continue reading
Aug. 22 – The Central Board of Direct Taxes (CBDT) recently issued draft guidelines on General Anti-Avoidance Rules (GAAR), which will be applicable to income accruing on or after April 1, 2013. The guidelines state that GAAR applies only where an overseas institutional investor takes advantage of double taxation avoidance treaties.