Other Briefings
Transactions Abroad Taxable in India
May 28 – A verdict recently passed by the Income Tax Appellate Tribunal (ITAT) in Mumbai stated that payments made to foreign entities for services rendered abroad can still be taxed in India if the deal can be linked back to the country. “It is no longer necessary that, in order to attract taxability in […]
RBI Introduces Temp. Measures to Increase Liquidity
May 27 – The Reserve Bank of India raised the rate under which banks can borrow from the central institution on Wednesday to 0.5 percent of deposits as it looks to create more liquidity in the market. This comes in anticipation of mid-June advance taxes and the more than US$20 billion in payments by telecom […]
Govt. to Revisit FDI Norms, Ask Reserve Bank to Come up with Fresh Formulations
May 26 – The Indian government will consider reversing changes made last year regarding the establishment of subsidiaries by 100% foreign owned non-banking finance companies (NBFCs). Before the revisions made last year, wholly foreign owned NBFCs that brought in US$50 million in capital could launch subsidiaries at will for specific activities without having to bring […]
Indian Ministries to Support 100 Percent FDI in Multi-Brand Retail
May 25 – India’s Commerce and Industry Ministry is likely to support a move to allow 100 percent foreign direct investment in multi-brand retail that could open the market further for multinational companies like Tesco and Wal-Mart. The proposed paper will recommend strict domestic sourcing requirements and require investments in backward linkages with the official […]
India Trade Pact with ASEAN Members Applicable by August
May 24 – India’s trade pact with seven member countries of the Association of Southeast Asian Nations (ASEAN) will begin to take effect in August. The India-ASEAN trade pact was signed last year but was initially only adopted by ASEAN members Singapore, Thailand and Malaysia in January. The other seven members of the group will […]
India Set to Overhaul Labor Law
May 21 – The Indian government has announced plans to revamp its labor law to make it easier for both employees and employers to settle disputes. This may mean that the new law will provide more avenues for resolving labor grievances out of court. Companies with a minimum of 20 employees may be required to […]
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 […]
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 […]
