Sept. 30 – Authorities have revised rules on goods sourced from foreign investment-funded wholesale ventures by doing away with the restriction that goods can only be used internally.
The current limit on such sales will still apply though, restricting such transactions to only up to 25 percent of the total sales of the wholesale company. Continue reading
Sept. 29 – The government is considering amending the laws to hold multinational audit firms accountable for negligence done by their affiliates in the country.
“You (the global network) can’t say that you are not responsible,” said Corporate Affairs Minister Salman Khurshid. “If an associate firm does something wrong… will the liability rest with the firm doing the audit in India or will the liability go back to the firm with the same name globally?” Continue reading
Sept. 28 – The new issue of India Briefing Magazine is now online and available for PDF download at the Asia Briefing Bookstore.
In this issue of India Briefing, we provide an expatriate manager’s introduction to India. From key country facts and figures to cultural and communication issues, we take a look at one of the fastest growing destinations for foreign investment.
India today represents a great investment opportunity. Knowledge of India business practices and an understanding of Indian culture are priorities for success in this market. We analyze the top reasons to invest in India, cover basic business rules of etiquette to observe when making appointments and negotiating a deal, and discuss some of the communication challenges that expatriates experience when working in India.
Sept. 28 – The Indian government is considering making changes to its Contract Labor Act of 1971 that would allow temporary workers to be paid the same wage rates and benefits as regular employees.
If the proposal is implemented, this will mean that temporary contract employees will also qualify for health and social security benefits. Continue reading
Sept. 28 – India’s Central Board of Direct Taxes has extended the deadline for filing of income returns for assessment year 2010-11 to October 15 from September 30.
The extension was made on account of “reports of disturbance of general life caused due to floods and heavy rains.” No mention has been made about extending deadline the filing of transfer pricing, although the due date for the filing of transfer pricing reports is linked to the due date for filing tax returns. As the penalty for late filing of transfer pricing documentation can be heavy, it is advisable to file said documentation by the original due date of September 30. Continue reading
Sept. 27 – India has raised the cap for foreign institutional investors (FII) wanting to invest in government securities and corporate bonds by US$5 billion each.
Investment in government securities will now be allowed for up to US$10 billion from US$5 billion and corporate bonds limit increased to US$20 billion from US$15 billion. The change in policy comes at a time when FIIs have been increasingly investing in Indian debt and equity markets. Continue reading
Sept. 24 – Companies wanting to establish units in special economic zones in India may begin applying online starting October as part of government efforts to cut down transaction costs and attract more business.
“The benefit would be that units would be able to do transactions very fast. Their transaction cost will be reduced dramatically…We expect that by middle of next month we will be fully on that system,” said D.K. Mittal, additional secretary at the Ministry of Commerce. Continue reading
Sept. 23 – The Department of Industrial Policy and Promotion is voicing its opposition to a new proposal that would forbid companies with small levels of foreign funding to be allowed to enter restricted sectors.
The agency is urging the finance ministry to reconsider the proposed policy that would keep out companies with even the smallest amounts of foreign investment from sensitive sectors like multi-brand retail, atomic energy, real estate, lottery, and a type of savings scheme practiced in India called chit funds. Continue reading