New Issue of India Briefing: India’s Goods & Service Tax and Retail Sector

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Oct. 24 – In this new issue of India Briefing Magazine – titled India’s Goods & Service Tax and Retail Sector – we focus on two dramatic, ongoing initiatives by the Indian government to fuel economic activity in the country: the introduction of a dual goods and service tax and further opening in the retail sector.

India’s existing indirect tax structure is being restructured with a synchronized tax system and uniform levy, continuing national tax structure reform to encourage entrepreneurial initiatives and economic activity in India. A dual – Central and State level – Goods and Service Tax (GST) is planned to replace most of India’s current indirect taxes. A country-wide GST is anticipated to be realized by 2012-13.

Additionally, the Indian government is currently discussing the removal of the 51 percent cap on FDI into single-brand retail outlets and allowing some degree of FDI in multi-brand retailing, which has so far been prohibited in India. Recent protests and boycotts of modern retailers in India indicate that the forays foreign retailers have made into India’s retail sector are not welcomed by all.

Finally, we take a closer look at India’s retail sector – differences between industries, city tiers and how India compares to China in this respect.

In this issue:

  • The New Goods and Services Tax
  • Foreign Direct Investment in Single and Multi-brand Retail
  • India and China’s Retail Sectors Compared

This issue of India Briefing magazine – India’s Goods & Service Tax and Retail Sector – is available on the Asia Briefing Bookstore priced at US$10 for immediate PDF download.

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in India. For more information, please contact info@dezshira.com, visit www.dezshira.com, or download the firm’s brochure here.