Other Briefings
India, Europe to Finalize Free Trade Deal
Jun. 24 – India and Europe are set to finalize a free trade deal by the end of this year that aims to boost bilateral trade to US$66 billion in the next five years. Negotiations begun as early as 2007 but have proceeded slowly due to trade issues presented by both countries. An “in principle” […]
Insurance Sector May Increase Cap on FDI
Jun. 23 – India is considering lifting its foreign direct investment cap on the insurance sector from 26 percent to 49 percent according to Finance Minister Pranab Mukherjee. “We have committed to allow 49 percent and the necessary legislation is pending before the House, as the leg process will be completed it will be done…in […]
Double Tax Avoidance Agreements Still Applicable Despite New Tax Code
Jun. 23 – The revised discussion paper on India’s new Direct Tax Code has assured that Double Tax Avoidance Agreements (DTAA) made with other countries will not be annulled when the new tax code is implemented. Specifically the paper says that, “The current provisions of the Income-tax Act provide that between the domestic law and […]
Berkshire Hathaway Enters India Market Via Wholly-Owned Subsidiary
Jun. 21 – Warren Buffett’s conglomerate Berkshire Hathaway has confirmed its entry to the Indian market via a wholly-owned subsidiary that will use a corporate agency license to sell motor insurance policies offered by Bajaj Allianz General Insurance. The modest entry into India will involve the company investing Rs. 500 million, or about US$11 million, […]
Income Tax Exemptions Not Available for New SEZs
Jun. 21 – Income tax exemptions for new special economic zones will no longer be available as confirmed by Revenue Secretary Sunil Mitra. Tax deductions on income will be applicable to existing SEZs based on the latest draft version of the Direct Tax Code. The proposed ruling may affect India’s plans to open 469 new […]
Residency Definition Clarified in Latest Discussion Paper on DTC
Jun. 18 – The newest version of the discussion paper on the Direct Tax Code has clarified the definition of residence for foreign companies in India assuaging fears that companies may be inevitably taxed on their global income. The paper offers a clearer definition of residency specifying that a foreign company will be considered an […]
Minimum Alternate Tax May Be Credited Against Corporate Tax
Jun. 18 – India may allow companies in all sectors paying the minimum alternate tax (MAT) to credit it against corporate tax that can be carried forward for 10 years according to a revised discussion paper released on Tuesday. Currently, MAT is levied at 19.93 percent of book profits. The long awaited Direct Tax Code […]
Special Economic Zone Units Allowed to Relocate
Jun. 17 – The government will soon allow industrial units to transfer from one special economic zone to another pending consent from the Board of Approval (BoA). It is easier for an industrial unit to petition for a transfer to another special economic zone if the units have yet to begin operations or production as […]
