Other Briefings
Vodafone Tax Case Sets Landmark Precedent
Sept. 13 – The Mumbai High Court ruling on the Vodafone case is expected to set a landmark precedent for cross-border deals in the country. It marks the first time that an Indian court has ruled in favor of tax authorities, allowing them to charge a foreign company capital gains tax for a transaction that […]
Court Ruling: Overseas Payments Not Liable to Tax
Sept. 10 – India-based companies are not liable to deduct tax on overseas payments according to the latest Supreme Court on the subject. This overturns the income-tax department’s earlier decision on the contrary and is a huge relief for many local and foreign companies based in India. More importantly, it formally clarifies the tax law […]
Tamil Nadu Authorities Relax Rules to Attract Small Companies
Sept. 9 – Tamil Nadu authorities are revising rules at information technology parks located in Tier II cities to attract smaller companies to invest there. “Earlier it used to be 50 acres or 100 acres that was affordable to mid-size and large companies. Now, we are willing to give one acre to attract smaller companies […]
India to Sign FTAs with Malaysia, Japan
Sept. 8 – India is expected to formally sign free trade agreements with Japan and Malaysia by the end of the year. India’s Prime Minister Manmohan Singh is slated to be in the countries in October. “I am reasonably confident that we will sign the deal with Japan and Malaysia before the end of this […]
15,000 Companies in India Take Easy Exit Scheme
Set. 7 – An estimated 15,000 companies have opted to take the “easy exit scheme” proposed by the Ministry of Company Affairs (MCA), which cuts down on regulatory processes and costs. Of the companies applying, 1,815 are companies in finance and investment. The scheme allows companies to take out their names from the Register of […]
Lifting Restriction on Locally Reinvested Profits Proposed
Sept. 6 – Foreign firms must not be restricted in reinvesting their profits to local subsidiaries, according to a proposal submitted by the Department of Industrial Policy and Promotion. “If companies are not permitted to fund downstream investments from internal accruals, such funds can be distributed as dividends and then the eligible amount repatriated and […]
India to Monitor Internet, Telecom User Data
Sept. 3 – Indian authorities are requiring communication service companies like Google and Skype to allow access to user data within two months as part of government efforts to tighten security. The news comes after authorities threatened to ban Blackberry use in India if Research In Motion did not give them the ability to monitor […]
New Tax Code Proposes Investment-Linked Incentives
Sept. 2 – The Direct Taxes Code (DTC) Bill is suggesting that profit-linked incentives can be replaced with investment-linked incentives for businesses that currently enjoy tax cuts. If the proposal is approved, this may change incentives for special economic zone developers and businesses dealing with power, infrastructure, food processing, hotels and hospitals.
