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    India, United States Settle Tax Profit Dispute

    May 20 – A tax dispute between India and the United States has been resolved with India agreeing to tax 17.5 percent of the profits earned by the Indian subsidiaries of U.S. companies in 2004-05. Previously, India wanted to implement a 25 to 30 percent tax on profits of IT services and research arms of[…..]

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    Tax Exemption List for Port, Airport Services to be Released Soon

    May 19 – India will soon announce a list of tax exempt port and airport services as it tests aspects of the pending comprehensive service tax regime. “We will tax even non-taxable services but spare some essential services such as medical, education, pollution control and emergency services such as fire fighting, special services provided at[…..]

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    India May Widen Foreign Investment Definition

    May 18 – The finance ministry is considering widening the scope of foreign investments to include instruments that give voting rights to foreign investors. Under the new FDI policy, a company qualifies as a local company if it has less than 50 percent foreign investments and has Indian directors as a majority resident. If the[…..]

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    Commerce Ministry Proposes Increased FDI in Defense Sector

    May 18 – India’s Commerce and Industry Ministry has released a discussion paper that suggests increasing foreign direct investment in the defense sector from 26 percent to 74 percent to improve manufacturing and technology transfer in the country. The response to the proposal has been varied, with some suggesting an increase of 49 percent instead[…..]

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    Government to Implement Stricter Audit for NGO Funding

    May 17 – The Finance Ministry has announced measures that will strictly monitor government funding to non-profit organizations as part of efforts to stay within budget during the year. “All ministries and departments of the Government of India should include in their annual report a statement showing the quantum of funds provided to each of[…..]

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    New Oversight Body to Enforce FDI Ban on Sensitive Sectors

    May 14 – The government will establish an oversight body to prevent foreign direct investments from entering banned sectors. This is to prevent FDI from entering prohibited sectors such as multi-brand retail, gambling, betting, lottery, atomic energy and plantation. “The proposal was discussed at a meeting attended by officials from various ministries including the department[…..]

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    Himachal, Uttarakhand Calls for Renewal of Special Industrial Package

    May 13 – Himachal Pradesh and Uttarakhand state authorities are requesting that expired special industrial packages be renewed. Chief Ministers Prem Kumar Dhumal and Ramesh Pokhriyal Nishank submitted a joint letter to Prime Minister Manmohan Singh on Wednesday to request the renewal. The package has successfully enticed investment to the states with its host of[…..]

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    India Briefing Releases Guide to Doing Business in India

    May 13 – India Briefing has just published a new business guide to India. “Doing Business in India” is the definitive guide to one of the fastest growing economies in the world, providing a thorough and in-depth analysis of India, a comprehensive guide to investing in the country, and key demographics and overviews of the[…..]