LEGAL ASPECTS OF INVESTMENT INTO INDIA

Size: px
Start display at page:

Download "LEGAL ASPECTS OF INVESTMENT INTO INDIA"

Transcription

1 LEGAL ASPECTS OF INVESTMENT INTO INDIA N. RAJA SUJITH Partner 202, Pride Elite, 10 Museum Road, Bangalore Tel: , Fax: Other offices: Mumbai, New Delhi, Chennai and Hyderabad mailbox@majmudarindia.com

2 Synopsis Legal aspects for setting up business in India Direct Taxes Code External Commercial Borrowing Transfer Pricing law of India

3 Indian Economy - Strengths Conservative GDP growth rate for % Current growth stimulators Most sectors profitable Losses in automotives, exports, textiles, etc. Homegrown demand Robust and solvent banking sector Effective stimulus packages Government spending on infrastructure Inflation under control

4 Foreign Direct Investment Sectoral Policies 100% Foreign Direct Investment ( FDI ) permitted in most sectors Restricted sectors e.g., private banks (74%); insurance (26%) Prohibited sectors e.g., atomic energy, lottery, retail (except single-brand retail) Automatic Route Approval Route

5 Indirect Foreign Investment - New Rules on Indirect Holding Illustration 1 No foreign investment in the Indian operating company as the Indian investing company is owned and controlled by resident Indian citizens.

6 Illustration 2 Rules on Indirect Holding (contd.) As the Indian investing company is owned by the foreign company, indirect foreign investment in the Indian operating company will be taken as 51%, i.e., the entire shareholding of the Indian investing company into the Indian operating company

7 Illustration 3 Rules on Indirect Holding (contd.) As the Indian operating company is 100% owned by an Indian investing company, which is, in turn, owned and controlled by the foreign company, indirect foreign equity in the Indian operating company will be 65%.

8 Rules on Indirect Holding (contd.) Emphasis on owned beneficial ownership of more than 51%; and controlled right to appoint majority of directors and shareholders agreement clauses Approval requirements: Operating companies subject to sectoral caps no prior approval required otherwise

9 Rules on Indirect Holding (contd.) Investing-cum-operating companies subject to sectoral caps no prior approval required otherwise intimation to Government within thirty (30) days Investing companies subject to sectoral caps require prior FIPB approval irrespective of amount of foreign investment intimation to Government within thirty (30) days

10 Illustration 4 Loopholes Rules on Indirect Holding (contd.) May lead to investment in restricted sectors This investment not foreign investment But effectively permits investment in retail company

11 Using Offshore Jurisdictions Offshore holding jurisdictions Common jurisdictions Mauritius Cyprus Singapore Luxembourg/Netherlands Mauritius, Cyprus and Singapore offer capital gains advantage - sale of an Indian company by a holding company does not attract capital gains tax in India Allows efficient group structuring

12 Fate of offshore holding structures G20 has announced tough policy on tax havens Regulatory perspectives Extensive KYC searches Recent SEBI initiative Cayman Islands recognized as an appropriately regulated jurisdiction Indian tax authorities Vodafone offshore transfers taxable in India final decision still awaited

13 Structuring Investment into India BUSINESS STRUCTURES Liaison office Cannot perform activities that generate revenue not subject to Indian taxes Branch office Treated as a foreign company taxed at 40% plus applicable surcharge cannot perform manufacturing Project Office for undertaking activities incidental to a project in India taxed at 40% plus applicable surcharge Joint Venture/Wholly Owned Subsidiary It is an Indian company taxed at 30% plus applicable surcharge

14 Taxes in India Customs Duty governed by the Customs Act, 1962 Service Tax tax on services Governed by Finance Act, 1994 rate of 10.3% VAT / Sales Tax tax on sale of goods different provisions for intra-state sales Central Sales Tax Inter-state sales 2% GST to be introduced by April 1, 2010 Excise Duty tax on manufacture of goods Income Tax Governed by the Income Tax Act, 1961

15 Taxes in India (contd.) Minimum Alternate Tax ( MAT ) 15% on book profits Dividend Distribution Tax ( DDT ) 15% More than 70 treaties Permanent establishment ( PE ) issues Fixed Place PE A foreign enterprise carries on business through a fixed place in India generally excludes preparatory and auxiliary activities Service PE providing services in India through employees for more than 90 days US and UK treaties Unfavourable tax exposure in India question of attribution of profits

16 Incentive Schemes Various incentive schemes offered to exporters Export Oriented Unit ( EOU ) Export Processing Zones ( EPZ ) Electronic Hardware Technology Parks ( EHTP ) Bio-Technology Parks ( BTP ) Software Technology Parks of India ( STPI ) Special Economic Zones ( SEZ ) Tax incentives All schemes (except SEZ) exempt from income tax on profits from exports till financial year Duty- free import of capital goods and raw materials Exemption from central excise duty and other duty drawbacks SEZ tax holiday for any 10 out of 15 consecutive assessment years

17 Repatriation of Dividends from India Assume net profit of 100 (A) Corporate of A = 34 (B) Profits after tax (A B) = 66 (C) Statutory Transfer to Reserves (maximum 10% of C) = 6.6 (D) Distributable profits (C D) = 59.4 (E) Dividend Distribution of E = 10 Effective tax paid (44) = 44% Effective repatriation (59.4) = 59.4%

18 Repatriation of Dividends from India (contd.) Other issues DDT not a deductible expenditure As DDT is paid by Indian company shareholder may not claim credit of DDT in home jurisdiction hence, important to use holding company jurisdiction that does not tax dividend Definition of dividend includes distribution of dividend in kind

19 Repatriation of Dividends from India (contd.) Dividend from India No WHT on dividends in India However DDT has to be paid Mauritius 3% tax Cyprus no tax (defence contribution between 0 15%) Luxembourg no tax if participation exemption claimed Netherlands Exempt from tax subject to conditions Dividend from Holding Company No WHT in Mauritius and Cyprus Netherlands and Luxembourg EU Parent Subsidiary Directive

20 Repatriation of Interest from India Interest from India WHT on interest in India: (a) Mauritius/Luxembourg holding company 20%, (b) Cyprus/Netherlands holding company 10% Corporate tax in Mauritius, Luxembourg, Netherlands and Cyprus credit against WHT in India reduces liability Interest from holding company No WHT from Netherlands, Mauritius and Cyprus WHT of 10% from Luxembourg where interest linked to remuneration of Luxembourg Company

21 Repatriation as fees for technical services Fees for technical services reduced WHT of 10% under Indian tax law 10% will apply to Mauritius, Netherlands and Luxembourg For Cyprus holding company, WHT in India can be negated if technical service do not make available any technical know-how or knowledge to Indian company Advantages Efficient repatriation Lowest WHT Amounts to deduction in the hands of the Indian company

22 Repatriation directly to Spain Interest WHT in India 15% (reduced by treaty) Fees for technical services Definition under Spain treaty includes all technical and consultancy services WHT 10% Dividends No WHT in India DDT has to be paid in (plus surcharge) Credit in Spain for DDT -??

23 Employment Laws Hire at will, fire with thought Central and state labour legislations Social welfare legislations to provide for employee benefits like provident fund, gratuity employee state insurance Contract labour

24 Draft Direct Tax Code Draft Code - to be effective from April 1, 2011 Replaces existing Income Tax Act Highlights Corporate tax rate for all companies 25% MAT 2% of gross assets Definition of residence expanded to include overseas subsidiaries of Indian companies Distinction between short term and long term capital gains done away with Tax residence certificate mandatory for claiming relief under double taxation avoidance agreements

25 Draft Direct Tax Code (contd.) Key issues: General Anti-Avoidance Rules Code to override existing treaties Asset based minimum corporate tax Branch profit tax only for foreign companies Advance pricing arrangements

26 Indian Transfer Pricing Rules Salient features Covers International Transactions between Associated Enterprises Arm s length price determination Accountant s certificate Documentation Compulsory transfer pricing audit INR50 million (approx. Euros 720,186) Compulsory scrutiny INR150 million (approx. Euros 2,160,561) Safe harbor rule (+/-) 5%

27 Indian Transfer Pricing Rules (contd.) Methods for determining arm s length price Comparable uncontrolled price method Resale price method Cost plus method Transactional Net Margin Method Profit split method Reference to transfer pricing officer Draft direct tax code proposes to introduce advance pricing agreements

28 External Commercial Borrowings Automatic route no approval required Eligible borrowers Indian companies except those engaged in financial sector Eligible lenders international banks, foreign equity holders (holding 25% equity Permissible end-uses capital investments, overseas acquisitions, etc. excludes exclude general corporate purposes, working capital requirements and real estate sector Corporate other than hotel, hospital and software company can avail USD 500 million per year

29 External Commercial Borrowings (contd.) Security choice of parties NOC required from Authorized Dealer for security in shares, immovable property and issuance of guarantees Approval route Cases not falling within the automatic route In either case, loan has to be registered with the RBI before draw-down thereafter, monthly reports regarding utilization

30 External Commercial Borrowings (contd.) Advantages Repayment much simpler as compared to liquidating equity investments Tax Implications Interest payments attract withholding of 20% subject to treaty Spanish treaty limited to 15% Interest is a deduction from taxable income Disadvantages Regulatory hurdles regarding end-use Regulations change very frequently

31 Thank You 202, Pride Elite, 10 Museum Road, Bangalore Tel: , Fax: Other offices: Mumbai, New Delhi, Chennai and Hyderabad

AA& Associates. Setting Up >> LLP. business presence in india.

AA& Associates. Setting Up >> LLP. business presence in india. LLP AA& Associates chartered accountants (A member firm of NIS Global) Setting Up >> business presence in india www.asa.in CORPORATE TAX >> CORPORATE TAX IS PAID BY COMPANIES, BRANCHES AND PROJECT OFFICES

More information

Setting up >> business presence in india.

Setting up >> business presence in india. Setting up >> business presence in india www.asa.in CORPORATE TAX >> CORPORATE TAX IS PAID BY COMPANIES, BRANCHES AND PROJECT OFFICES OF OVERSEAS COMPANIES ON PROFITS AND OTHER INCOME COMPANY RATE (%)

More information

CORPORATE CATALYST (INDIA) PVT LTD. (in joint venture with SCS Global) Setting up >> business presence in india

CORPORATE CATALYST (INDIA) PVT LTD. (in joint venture with SCS Global) Setting up >> business presence in india CORPORATE CATALYST (INDIA) PVT LTD (in joint venture with SCS Global) Setting up >> business presence in india CORPORATE TAX >> CORPORATE TAX IS PAID BY COMPANIES, BRANCHES AND PROJECT OFFICES OF OVERSEAS

More information

Regulatory & Tax Aspects for Establishment of Business Entity in India

Regulatory & Tax Aspects for Establishment of Business Entity in India Regulatory & Tax Aspects for Establishment of Business Entity in India This PPT is prepared by CA. PARVEEN GAMBHIR. The information contained in this PPT is not his comprehensive or exhaustive study but

More information

Regulatory Compliance - India >>

Regulatory Compliance - India >> Regulatory Compliance - India >> www.asa.in Once an investor sets-up a business in India, whether it is a liaison office, project office, branch or company, that business needs to comply with Indian regulations.

More information

FOREIGN CORPORATES. Strategy for Entry in India

FOREIGN CORPORATES. Strategy for Entry in India FOREIGN CORPORATES Strategy for Entry in India 1 Reasons for Preferred destination - India Largest Democracy, 2 nd largest Populous Country & 7 th largest continent in the world Government liberalisation

More information

Holding Company Structures and Cross Border Finance WIRC

Holding Company Structures and Cross Border Finance WIRC www.pwc.com Holding Company Structures and Cross Border Finance WIRC 13 India Inbound Activity Source: GT Deal tracker Inbound Deals FY11 142 deals worth US$ 29 bn CAGR of 39% in terms of volume and 172%

More information

Cross Border Investments: Mergers and Acquisition and Choice of Jurisdiction

Cross Border Investments: Mergers and Acquisition and Choice of Jurisdiction : Mergers and Acquisition and Choice of Jurisdiction Raju Kumar Partner - Tax & Regulatory Services 4 September 2014 Going Global Acquisitions of existing overseas business/assets Setting up of JV with

More information

INTERNATIONAL TAX STRUCTURING FOR INVESTING ADROAD INTERNATIONAL TAX CONFERENCE

INTERNATIONAL TAX STRUCTURING FOR INVESTING ADROAD INTERNATIONAL TAX CONFERENCE INTERNATIONAL TAX STRUCTURING FOR INVESTING ADROAD December 5, 2009 INTERNATIONAL TAX CONFERENCE - 2009 Shefali Goradia Partner, BMR Advisors OVERSEAS INVESTMENT KEY DRIVERS Access to Global Markets Inorganic

More information

Funds Management. Tax and Regulatory Issues. March KPMG.com/in

Funds Management. Tax and Regulatory Issues. March KPMG.com/in Funds Management Tax and Regulatory Issues March 2017 KPMG.com/in 1 Contents 1 Investment routes An overview 2 Key Tax Developments and Issues 3 Key Policy Changes 2 Investment Routes An Overview 3 Type

More information

Doing Business in India

Doing Business in India I N T E R N A T I O N A L C O R P O R A T E T A X Doing Business in India T A X Ajit Tolani KPMG LLP New York City, New York April 2007 ANY TAX ADVICE IN THIS COMMUNICATION IS NOT INTENDED OR WRITTEN BY

More information

Foreign Source Funding Options

Foreign Source Funding Options Foreign Source Funding Options 28 October, 2017 Index Inbound Investments FDI Policy Legal Framework & Regulators Typical Foreign Investment Windows FDI Policy at a glance Eligible Investors Foreign Funding

More information

Trend of FDI in India

Trend of FDI in India Trend of FDI in India Monika Chahal 1, Garima Hooda 2, Tarun Dalal 3 1, 2, 3 Asstt. Prof., Maturam Institute of Management, Rohtak, Haryana (India) Abstract With the beginning of new economic policy in

More information

Setting up your Business in Georgia Issues to consider

Setting up your Business in Georgia Issues to consider Georgia is one of the world s fastest growing economies and in the region is leading location for global investment. As a result of innovative reforms implemented in Georgia, the World Bank rated Georgia

More information

Auriga Corporate Advisors.

Auriga Corporate Advisors. Doing Business in India 1 Why India? Large Country with 28 States and 7 UT. Country rich in history, culture, religion & diversity. 22 Officially recognised languages 2 decades of Economic Liberalisation

More information

IBFD Course Programme Principles of International Taxation

IBFD Course Programme Principles of International Taxation IBFD Course Programme Principles of International Taxation Need a good base to start your career in international tax? This course will provide the essential knowledge you need and give you the confidence

More information

Principles of International Taxation

Principles of International Taxation Overview and Learning Objectives This tax course is designed to provide participants with the essentials of international taxation. The first three days are dedicated to the fundamental concepts relevant

More information

FOREIGN DIRECT INVESTMENT IN INDIA

FOREIGN DIRECT INVESTMENT IN INDIA Modes of Foreign Investment in India: Foreign Direct Investment comprising of equity in India, ADR/GDR/FCCB, -automatic route or Route (approval route) for foreign investors as well as NRI. Foreign Portfolio

More information

Paris Business France Friday 2 nd December 2016

Paris Business France Friday 2 nd December 2016 Paris Business France Friday 2 nd December 2016 International Desk Asia-Pacific - Group Crédit Agricole HOW TO FINANCE YOUR INVESTMENT IN FRANCE? IN INDIA? A universal client-focused banking model with

More information

DIVISION ONE GUIDE TO FDI POLICY

DIVISION ONE GUIDE TO FDI POLICY CONTENTS u Chapter-heads I-5 u FDI Policy at a Glance Issued on 17-4-2014 I-15 DIVISION ONE GUIDE TO FDI POLICY 1 BACKGROUND OF FOREIGN INVESTMENT IN INDIA 1.1 Introduction 1.3 1.1-1 Consolidated Circular

More information

Headquarter Jurisdictions Around the World: A Comparison

Headquarter Jurisdictions Around the World: A Comparison Headquarter Jurisdictions Around the World: A Comparison 2017 Austria Belgium Cyprus Dubai Hong Kong Ireland Luxembourg The Netherlands Portugal Singapore Spain Switzerland United Kingdom Headquarter jurisdictions

More information

Chamber of Tax Consultants

Chamber of Tax Consultants Chamber of Tax Consultants Inbound Investments Tax & Regulatory Aspects October 22, 2016 + 91 98861 20086 amithraj123@gmail.com Contents Entry Options for FDI Funding Options Downstream Investments FDI

More information

BEPS Multilateral Instrument (MLI), India s Corresponding Positions, Implementation (GAAR)

BEPS Multilateral Instrument (MLI), India s Corresponding Positions, Implementation (GAAR) BEPS Multilateral Instrument (MLI), India s Corresponding Positions, Implementation (GAAR) Dr. Parthasarathi Shome Chairman International Tax Research and Analysis Foundation (ITRAF) www.itraf.org Visiting

More information

FOREIGN DIRECT INVESTMENT OF INDIA

FOREIGN DIRECT INVESTMENT OF INDIA FOREIGN DIRECT INVESTMENT OF INDIA In the recent times, Indian economy has seen increase in number of investments from across the world. In order to make our economy investor-friendly various laws, rules

More information

Chapter VIII. Summary, Findings, Suggestions and Conclusion of the study

Chapter VIII. Summary, Findings, Suggestions and Conclusion of the study Chapter VIII Summary, Findings, Suggestions and Conclusion of the study 328 CHAPTER VIII SUMMARY, FINDINGS, SUGGESTIONS AND CONCLUSION OF THE STUDY FDI consists of investments not merely financial but

More information

Union Budget Impact on the M&A & Private Equity investments in India

Union Budget Impact on the M&A & Private Equity investments in India Union Budget 2014-15 Impact on the M&A & Private Equity investments in India July 2014 Content 2 03 Overview 04 Key policy initiatives 05 Key incentives to capital markets 06 Direct tax proposals 11 Other

More information

Foreign Investment FEMA provisions

Foreign Investment FEMA provisions Foreign Investment FEMA provisions Institute of Chartered Accountants of India Beginner s Study course on FEMA 11 th May 2013 Naresh Ajwani Chartered Accountant Inbound Investment Inbound investment refers

More information

Sampat & Mehta GST - FAQ

Sampat & Mehta GST - FAQ Sr. No. Particulars Suggestions 1. What documents are required to accompany movement of Goods outside own premises E Way Bill to be generated from GSTN Portal before or at the time of movement of Goods

More information

Budget 2014 Snapshot Key proposals for Financial Services Sector

Budget 2014 Snapshot Key proposals for Financial Services Sector Budget 2014 Snapshot Key proposals for Financial Services Sector Direct Taxes Indirect Taxes FIIs / FPIs Mutual Funds Private Equity & VCs No change in the income-tax rate, surcharge and education cess

More information

FEMA Updates Foreign Exchange Management (Transfer or Issue of Security by a

FEMA Updates Foreign Exchange Management (Transfer or Issue of Security by a FEMA Updates Foreign Exchange Management (Transfer or Issue of Security by a Person Resident Outside India) Regulations, 2017 December 27, 2017 In Foreign Exchange Management Act, 1999 (FEMA) one of the

More information

PART A : ENTRY STRATEGIES INBOUND PART B : REGULATORY ISSUES IN FEMA & I.T. FOR LO, BO & PO

PART A : ENTRY STRATEGIES INBOUND PART B : REGULATORY ISSUES IN FEMA & I.T. FOR LO, BO & PO CONTENTS PART A : ENTRY STRATEGIES INBOUND PART B : REGULATORY ISSUES IN FEMA & I.T. FOR LO, BO & PO 3 PART A: ENTRY STRATEGIES INBOUND 4 AS A FOREIGN COMPANY AS A LIMITED LIABILITY PARTNERSHIP AS AN INDIAN

More information

EXTERNAL COMMERCIAL BORROWING BY INDIAN COMPANIES

EXTERNAL COMMERCIAL BORROWING BY INDIAN COMPANIES Salvus Capital Advisors Pvt. Ltd. A research report on EXTERNAL COMMERCIAL BORROWING BY INDIAN COMPANIES TABLE OF CONTENTS Overview... 3 Regulations... 3 Eligible Borrowers... 3 Recognized Lenders... 4

More information

TAX EDGE. Monthly Tax & Regulatory Updates. October

TAX EDGE. Monthly Tax & Regulatory Updates. October TAX EDGE Monthly Tax & Regulatory Updates October 2018 www.krayman.com Accounting Taxation Regulatory Contents Goods & Services Tax (GST) Customs Direct Tax Company Law Reserve Bank of India (RBI) Goods

More information

Structuring Indian Investments Brenden Saldanha India Tax Desk, New York

Structuring Indian Investments Brenden Saldanha India Tax Desk, New York Structuring Indian Investments Brenden Saldanha India Tax Desk, New York 25 May 2011 Overview of taxation in India Indian Co s income taxed at 32.45% US Co United States Interest / Dividends / Capital

More information

Establishing a joint venture in india An Overview

Establishing a joint venture in india An Overview MLS Chase solicitors Establishing a joint venture in india An Overview Manoj Ladwa & Vaibhav Shukla MLS Chase 2007 The information in this document is provided for general information purposes only and

More information

STP / EHTP Scheme Policies and Procedures

STP / EHTP Scheme Policies and Procedures STP / EHTP Scheme Policies and Procedures STP/EHTP Scheme To promote exports from the country, Govt. of India, Ministry of Commerce & Industry promulgated EXIM Policy (EXIM Import Policy) / Foreign Trade

More information

India Tax Updates, 2013

India Tax Updates, 2013 India Tax Updates, 2013 International Bar Association Amesur, Hanisha 6/1/2013 India Tax Updates 1. Tax on super-rich The base income-tax brackets for the assessment year (AY) 2014-15 for individuals,

More information

Inbound FDI and FEMA Policy

Inbound FDI and FEMA Policy Inbound FDI and FEMA Policy WIRC ICAI 27 th Regional Conference 31 August 2012, Mumbai CA. Shabbir Motorwala Agenda An Overview - FDI Policy and FEMA 20 FDI Structural Framework FDI Key reporting / compliance

More information

LIAISON OFFICE/ BRANCH OFFICE/ PROJECT OFFICE

LIAISON OFFICE/ BRANCH OFFICE/ PROJECT OFFICE LIAISON OFFICE/ BRANCH OFFICE/ PROJECT OFFICE Intensive Study Course on FEMA The Chamber of Tax Consultants 15 th December, 2017 HINESH R. DOSHI & CO. LLP Chartered Accountants 1 CONTENTS PART A : Establishment

More information

Corporate Law Alert February 1, J. Sagar Associates advocates and solicitors. External Commercial Borrowing

Corporate Law Alert February 1, J. Sagar Associates advocates and solicitors. External Commercial Borrowing External Commercial Borrowing The Reserve Bank of India (RBI) had vide A.P. (DIR Series) Circular No. 27 dated September 23, 2011 enhanced the External Commercial Borrowing (ECB) limits for eligible borrowers

More information

Doing Business in India. At a glance. June skpgroup.com

Doing Business in India. At a glance. June skpgroup.com Doing Business in India At a glance June 2016 skpgroup.com DOING BUSINESS IN INDIA - AT A GLANCE FOREWORD India is among the fastest growing economies in the world. It is the third largest economy in

More information

The main sectors in the Indian economy comprises of the Services sector (53.9%), Industry sector (29.1%) and the Agriculture Sector (17.1%).

The main sectors in the Indian economy comprises of the Services sector (53.9%), Industry sector (29.1%) and the Agriculture Sector (17.1%). India has a total population of 1.3 billion (approx.) inhabitants (January 2018). India is a federation with a parliamentary system governed under the Constitution of India, which serves as the country's

More information

Tax Issues for Outbound Investors. Marie Bradley Bradley Tax Consulting

Tax Issues for Outbound Investors. Marie Bradley Bradley Tax Consulting Tax Issues for Outbound Investors Marie Bradley Bradley Tax Consulting Date: 20 th September 2011 Introduction Developing economies, rapid pace of growth Shift in world GDP towards emerging markets Large

More information

STP/EHTP Scheme offers

STP/EHTP Scheme offers STP/EHTP Scheme To promote export from the country, Govt. of India, Ministry of Commerce & Industry promulgated EXIM Policy ( EXIM Import Policy)/ Foreign Trade Policy (1.9.2004) To promote software and

More information

32nd Annual Asia Pacific Tax Conference November 2016 JW Marriott Hotel Hong Kong

32nd Annual Asia Pacific Tax Conference November 2016 JW Marriott Hotel Hong Kong 32nd Annual Asia Pacific Tax Conference 10 11 November 2016 JW Marriott Hotel Hong Kong Alternative A: Source country taxation, evolving PE rules and unilateral measures Chair: Gary Sprague, Palo Alto

More information

DOING BUSINESS & WORKING IN INDIA

DOING BUSINESS & WORKING IN INDIA DOING BUSINESS & WORKING IN INDIA CHENNAI BANGALORE COIMBATORE HYDERABAD INTELLECTUAL PROPERTY CORPORATE LEGAL 2 CONTENTS 1. Introduction... 5 2. Available Structures For Testing the Waters... 7 3. Business

More information

Foreign Direct Investment

Foreign Direct Investment Foreign Direct Investment Presented by: Team, ABN Amro Bank Business Banking, Commercial Banking New Delhi FDI,Investing in India Entry Routes Investing in India Automatic Route Prior Permission (FIPB)

More information

CROSS BORDER MERGER & ACQUISITION By Mr Himanshu Srivastava and Mr Nitin Arora

CROSS BORDER MERGER & ACQUISITION By Mr Himanshu Srivastava and Mr Nitin Arora CROSS BORDER MERGER & ACQUISITION By Mr Himanshu Srivastava and Mr Nitin Arora Merger & Acquisitions ( M&A ) are increasingly been recognized as a business tool. The most widely practiced business strategy

More information

EXTERNAL COMMERCIAL BORROWINGS BY INDIAN COMPANIES MADE EASY

EXTERNAL COMMERCIAL BORROWINGS BY INDIAN COMPANIES MADE EASY EXTERNAL COMMERCIAL BORROWINGS BY INDIAN COMPANIES MADE EASY Introduction On November 30, 2015, the Reserve Bank of India (the RBI ) revamped the regime governing external commercial borrowings ( ECBs

More information

Deposit and Remittances Foreign Exchange Management Act, 1999

Deposit and Remittances Foreign Exchange Management Act, 1999 Deposit and Remittances Foreign Exchange Management Act, 1999 Ghaziabad Branch CIRC Institute of Chartered Accountants of India 03 rd June 2016 Presentation by: CA. Sudha G. Bhushan Associate Director

More information

INDIA GREECE NETHERLANDS

INDIA GREECE NETHERLANDS HOLDING STRUCTURES Updated information JULY 2013 INDEX ANDORRA BULGARIA CYPRUS INDIA GREECE NETHERLANDS SPAIN URUGUAY GERMANY The content of this newsletter has been written or gathered by ANTEA Alliance

More information

Hot Tax and Investment Issues when Structuring Investment into Myanmar

Hot Tax and Investment Issues when Structuring Investment into Myanmar Hot Tax and Investment Issues when Structuring Investment into Myanmar At a Glance Myanmar Laos Cambodia Vietnam Singapore 6 countries More than 50 professional staff Indonesia Our Vision Southeast Asia

More information

Union Budget : Impact on the Private Equity investments in India. Grant Thornton India LLP. All rights reserved.

Union Budget : Impact on the Private Equity investments in India. Grant Thornton India LLP. All rights reserved. Union Budget 2013-14: Impact on the Private Equity investments in India Grant Thornton India LLP. All rights reserved. Union Budget 2013-14 Impact on the Private Equity investments 2 Contents 03 An overview

More information

Tax Considerations in International Financing Transactions

Tax Considerations in International Financing Transactions ICSI Seminar on Private Equity Catalyst To Economic Growth June 25, 2011, Hotel Le Meridien, Janpath, New Delhi Tax Considerations in International Financing Transactions Rupesh Jain Partner Private Equity

More information

EY Tax Alert. Executive summary. Third Protocol amending the India-Singapore tax treaty signed. 31 December 2016

EY Tax Alert. Executive summary. Third Protocol amending the India-Singapore tax treaty signed. 31 December 2016 31 December 2016 EY Tax Alert Third Protocol amending the India-Singapore tax treaty signed Executive summary Tax Alerts cover significant tax news, developments and changes in legislation that affect

More information

ANTI-AVOIDANCE AND SUBSTANCE ISSUES IN THE DTC

ANTI-AVOIDANCE AND SUBSTANCE ISSUES IN THE DTC ANTI-AVOIDANCE AND SUBSTANCE ISSUES IN THE DTC AKIL HIRANI Managing Partner 601/604, Naman Centre, A Wing, C-31, C G Block, Bandra Kurla Complex, Bandra (East), Mumbai-51, INDIA Tel: +91 22 6123-7272,

More information

FOREIGN DIRECT INVESTMENT

FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENT INDEX FOREIGN DIRECT INVESTMENT... 2 FDI CAP... 3 PROHIBITION ON INVESTMENT IN INDIA... 3 ELIGIBLE ENTITIES... 4 TYPE OF INVESTMENTS... 5 INVESTMENT IN SMALL SCALE INDUSTRIAL

More information

Did you know! Transactions M.2 Safe harbour rules M.3 Dispute resolution panel

Did you know! Transactions M.2 Safe harbour rules M.3 Dispute resolution panel M Transfer pricing Doing business in India 209 Did you know! India has emerged as the world s number one, along with the US, in annual solar power generation. In wind power production, when it comes to

More information

CPE STUDY CIRCLE MEETING FOREIGN TAX CREDIT MAY 2016

CPE STUDY CIRCLE MEETING FOREIGN TAX CREDIT MAY 2016 CPE STUDY CIRCLE MEETING FOREIGN TAX CREDIT MAY 2016 INTRODUCTION Objectives of a tax treaty Elimination of double taxation Clarification of fiscal situation of tax payers Certainty on nature of income

More information

WESTERN INDIA REGIONAL COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA

WESTERN INDIA REGIONAL COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA WESTERN INDIA REGIONAL COUNCIL OF THE INSTITUTE OF CHARTERED ACCOUNTANTS OF INDIA Establishment of Branch/ Liaison Office/ Project Office in India & Office outside India CA Natwar G. Thakrar 1 Agenda Introduction

More information

FDI in Real Estate Business

FDI in Real Estate Business FDI in Real Estate Business WAYS IN WHICH FOREIGN INVESTMENT CAN BE MADE IN REAL ESTATE FDI by NRI in Indian company engaged in Real Estate Development FDI by persons resident outside India (e.g. LLP,

More information

Recommendations: Providing a Fillip to Private Equity and Venture Capital in India

Recommendations: Providing a Fillip to Private Equity and Venture Capital in India Recommendations: Providing a Fillip to Private Equity and Venture Capital in India Draft as of 16 th March, 2014 For further clarification or discussion please contact Mr. Arvind Mathur, President Indian

More information

INVESTMENT IN TURKEY*

INVESTMENT IN TURKEY* INVESTMENT IN TURKEY* Zeki Gündüz 25 April 2006 www.pwc.com/tr www.vergiportali.com/english *connectedthinking PwC Table of Contents 1 2 3 4 5 6 7 8 9 10 Annex Turkey and EU Incorporation of Companies

More information

PAPER 2.03 CYPRUS OPTION

PAPER 2.03 CYPRUS OPTION THE ADVANCED DIPLOMA IN INTERNATIONAL TAXATION June 2017 PAPER 2.03 CYPRUS OPTION SUGGESTED SOLUTIONS PART A Question 1 Part 1 Tax residency of physical persons is determined by reference to physical presence

More information

EXTERNAL COMMERCIAL BORROWINGS. RAJESH THAKKAR 17 February 2018 ICSI WIRC Training

EXTERNAL COMMERCIAL BORROWINGS. RAJESH THAKKAR 17 February 2018 ICSI WIRC Training EXTERNAL COMMERCIAL BORROWINGS RAJESH THAKKAR 17 February 2018 ICSI WIRC Training TABLE OF CONTENTS ECB Overview 3 Parameters for ECB 7 Security for raising ECB 16 Trade Credit 19 Other Key Aspects 22

More information

TAX PROFILE, ESTONIA. (published in BNAI's Global Tax Guide) KEY FACTS INTRODUCTION RECENT DEVELOPMENTS. Kaido Loor and Elvira Tulvik

TAX PROFILE, ESTONIA. (published in BNAI's Global Tax Guide) KEY FACTS INTRODUCTION RECENT DEVELOPMENTS. Kaido Loor and Elvira Tulvik TAX PROFILE, ESTONIA (published in BNAI's Global Tax Guide) Kaido Loor and Elvira Tulvik Estonia Pärnu mnt 15, 10141 Tallinn phone +372 6 400 900, estonia@sorainen.com Latvia Kr. Valdemāra iela 21, LV-1010

More information

Direct Tax Proposals

Direct Tax Proposals Direct Tax Proposals Tax Rates No change in slabs of income tax or tax rates Surcharge re-introduced/increased Individuals > INR 10 million 10% Domestic Company > INR 100 million 10% Foreign Company >

More information

Global Banking Service. Report on India

Global Banking Service. Report on India Arctic Circle This report provides helpful information on the current business environment in India. It is designed to assist companies in doing business and establishing effective banking arrangements.

More information

Rajeev Pai, Chief Financial Officer JSW Steel Limited

Rajeev Pai, Chief Financial Officer JSW Steel Limited Rajeev Pai, Chief Financial Officer JSW Steel Limited Setting of Enterprise Resource Planning (ERP) based system and key challenges Accounting Standards and Regulatory compliance and Challenges thereof

More information

Gains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India

Gains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India KPMG FLASH NEWS KPMG IN INDIA Gains arising in the hands of Mauritian company from sale of equity shares and CCDs of an Indian company are not taxable as interest income in India 5 August 2014 Background

More information

WELCOME TO NATIONAL CMA PRACTITIONERS ON DELIBERATIONS ON CMA PRACTICE - EMERGING SCENARIO NEW DIMENSIONS IN INDIRECT PRACTICE

WELCOME TO NATIONAL CMA PRACTITIONERS ON DELIBERATIONS ON CMA PRACTICE - EMERGING SCENARIO NEW DIMENSIONS IN INDIRECT PRACTICE WELCOME TO NATIONAL CMA PRACTITIONERS ON DELIBERATIONS ON CMA PRACTICE - EMERGING SCENARIO NEW DIMENSIONS IN INDIRECT PRACTICE 23.02.2013 / CHENNAI. CMA Ashok Nawal Practicing Cost Accountant Statutory

More information

The Government of Mauritius issues GN 156 of 2016 in the view to enact changes to the double taxation agreement with India

The Government of Mauritius issues GN 156 of 2016 in the view to enact changes to the double taxation agreement with India TAX NOTE India-Mauritius Tax Treaty The Government of Mauritius issues GN 156 of 2016 in the view to enact changes to the double taxation agreement with India Ref. SUTSL/TXN/001/20160810 SAFYR UTILIS TAX

More information

ARTICLE. On Finance Bill (Budget) Proposals 2013 Income Tax Act, 1961 By CA. SATISH AGARWAL

ARTICLE. On Finance Bill (Budget) Proposals 2013 Income Tax Act, 1961 By CA. SATISH AGARWAL ARTICLE On Finance Bill (Budget) Proposals 0 Income Tax Act, 96 By CA. SATISH AGARWAL Mobile : +99808957 Phone : +95769 Office : 9/4, East Patel Nagar, (Near Jaypee Sidharthe Hotel) New Delhi - 0008 :

More information

Doing Business in India

Doing Business in India Doing Business in India September, 2015 Shivpriya Nanda / Sajai Singh Partners J. Sagar Associates advocates & solicitors Ahmedabad I Bengaluru I Chennai I Gurgaon I Hyderabad I Mumbai I New Delhi TODAY

More information

International Taxation: Recent Controversies & Jurisprudence

International Taxation: Recent Controversies & Jurisprudence WIRC of ICAI International Taxation: Recent Controversies & Jurisprudence September 15, 2012 CA Jiger Saiya CASE STUDIES DISCUSSED Turnkey Contracts Buyback of Shares Attribution of Profits to Dependent

More information

Cross Border Transactions Tax Aspects Refresher Course on International Taxation CA Anil Talreja 22 April 2017 ICAI 1

Cross Border Transactions Tax Aspects Refresher Course on International Taxation CA Anil Talreja 22 April 2017 ICAI 1 Cross Border Transactions Tax Aspects Refresher Course on International Taxation CA Anil Talreja 22 April 2017 ICAI 1 Key Takeaways from the session M&A Framework Cross border M&A Financing Options Inbound

More information

Basic International Taxation

Basic International Taxation Basic International Taxation Roy Rohatgi KLUWER LAW INTERNATIONAL LONDON / THE HAGUE / NEW YORK TABLE OF CONTENTS Preface About the Author xiii xv CHAPTER 1 AN OVERVIEW OF INTERNATIONAL TAXATION 1 1. Objectives

More information

Exchange of tax information: what does it change for Russian clients?

Exchange of tax information: what does it change for Russian clients? Exchange of tax information: what does it change for Russian clients? Exchange of fiscal information with Russia: What is the impact on Russian client s tax planning? Irina Dmitrieva Russia & CIS Private

More information

d e vreser st ighr lla

d e vreser st ighr lla Article 7 and 9 of the model conventions including International and Domestic TP Beginners Study Course on International Taxation July 4, 2015 Neha Arora 2 Contents Article 7 of the Model Convention Approaches

More information

DOING BUSINESS IN CYPRUS: CYPRUS COMPANY & TRUST FORMATION

DOING BUSINESS IN CYPRUS: CYPRUS COMPANY & TRUST FORMATION DOING BUSINESS IN CYPRUS: CYPRUS COMPANY & TRUST FORMATION 1 PREFACE G Vassiliou law office has prepared this outline in order to assist any individuals or businesses that might be considering Doing business

More information

Romania. Structure and development of tax revenues. Romania. Table RO.1: Revenue (% of GDP)

Romania. Structure and development of tax revenues. Romania. Table RO.1: Revenue (% of GDP) Structure and development of tax revenues Table RO.1: Revenue (% of GDP) 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 I. Indirect taxes 11.7 12.8 12.7 12.5 11.8 10.8 11.9 13.0 13.2 12.8 VAT 6.6 8.0

More information

Setting Up a Structure in India An overview of various options

Setting Up a Structure in India An overview of various options Particulars Liaison Office Branch Office Joint Venture Basic Objective Activities Permitted. Place of Business to act as a channel of communication between Head Office and entities in India. This entity

More information

Key highlights of the Union Budget 2017

Key highlights of the Union Budget 2017 Key highlights of the Union Budget 2017 Corporate Tax Failure to withhold taxes on payments to residents will lead to disallowance of expenditure even under the head income from other sources Restrictions

More information

New Policy / Initiatives : FDI & Infrastructure Development

New Policy / Initiatives : FDI & Infrastructure Development New Policy / Initiatives : FDI & Infrastructure Development India Investment Seminar Jointly hosted by JBIC & GOI Tokyo, 9 th November, 2009 1 Presentation Scheme The Economic situation FDI Policy Recent

More information

Headline Verdana Bold. Union Budget 2018 Understanding the impact on Foreign Portfolio Investors

Headline Verdana Bold. Union Budget 2018 Understanding the impact on Foreign Portfolio Investors Headline Verdana Bold Union Budget 2018 Understanding the impact on Foreign Portfolio Investors Forward The Indian Finance Minister presented the Union Budget 2018 today. The budget was presented against

More information

CTC New Delhi. Corporate Restructuring M&A. Tax & Regulatory Aspects. CA. Amithraj AN. September 17,

CTC New Delhi. Corporate Restructuring M&A. Tax & Regulatory Aspects. CA. Amithraj AN. September 17, New Delhi Corporate Restructuring M&A Tax & Regulatory Aspects + 91 98861 20086 amithraj123@gmail.com September 17, 2016 Contents Overview Business vs. Share Acquisition Transfer of Shares Slump Sale &

More information

P.MURALI & CO., CHARTERED ACCOUNTANTS. Profile

P.MURALI & CO., CHARTERED ACCOUNTANTS. Profile P.MURALI & CO., CHARTERED ACCOUNTANTS Profile INDEX ABOUT THE FIRM PARTNERS SERVICES CONTACT DETAILS About the Firm P.Murali & Co., the firm of Chartered Accountantants was Started by Mr.P.Murali Mohana

More information

Analysing BEPS Impact Private Equity sector

Analysing BEPS Impact Private Equity sector Analysing BEPS Impact Private Equity sector January 2016 Second line optional lorem ipsum B Subhead lorem ipsum, date quatueriure In this age of increasing focus on bottomlines, it is indeed tempting for

More information

Morocco Tax Guide 2012

Morocco Tax Guide 2012 Tax Guide 2012 structure of country descriptions a. taxes payable FEDERAL TAXES AND LEVIES COMPANY TAX CAPITAL GAINS TAX BRANCH PROFITS TAX SALES TAX/VALUE ADDED TAX FRINGE BENEFITS TAX LOCAL TAXES OTHER

More information

How to read Tax Treaties Salient features of select Indian DTAA. Arpit Jain Chartered Accountant

How to read Tax Treaties Salient features of select Indian DTAA. Arpit Jain Chartered Accountant How to read Tax Treaties Salient features of select Indian DTAA Arpit Jain Chartered Accountant Introduction Salient Features India has signed more than 90 DTAAs till date India does not have Model DTAA

More information

Impact of recent U.S. tax legislation on Israeli Companies May 13, 2008 Doron Sadan, Tax Partner, PwC Israel Tel:

Impact of recent U.S. tax legislation on Israeli Companies May 13, 2008 Doron Sadan, Tax Partner, PwC Israel Tel: Doron Sadan, Tax Partner, PwC Israel Tel: 03-7954584 doron.sadan@il.pwc.com The information contained in this presentation is for general guidance on matters of interest only. As such, it should not be

More information

INDIA FOREIGN EXCHANGE REGULATORY UPDATE

INDIA FOREIGN EXCHANGE REGULATORY UPDATE INDIA FOREIGN EXCHANGE REGULATORY UPDATE Introduction This update discusses certain key changes to India s foreign exchange regulations implemented recently. Foreign investment in financial services Recently,

More information

0 Uganda Fiscal Guide 2015/2016. Tax. kpmg.com

0 Uganda Fiscal Guide 2015/2016. Tax. kpmg.com 0 Uganda Fiscal Guide 2015/2016 Tax kpmg.com 1 Uganda Nigeria Fiscal Guide 2013/2014 2015/2016 INTRODUCTION Uganda Fiscal Guide 2015/2016 2 Basis of taxation Income tax is levied on both companies and

More information

Answer to MTP_Intermediate_Syllabus 2012_Dec2017_Set 1 Paper 11- Indirect Taxation

Answer to MTP_Intermediate_Syllabus 2012_Dec2017_Set 1 Paper 11- Indirect Taxation Paper 11- Indirect Taxation Academics Department, The Institute of Cost Accountants of India (Statutory Body under an Act of Parliament) Page 1 Paper 11- Indirect Taxation Full Marks: 100 Time allowed:

More information

EY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector

EY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector 24 June 2016 EY India Defence EY s point of view on amended Foreign Direct Investment (FDI) Policy on Defence Sector Further to the FDI policy reforms in a number of sectors (including defence) as introduced

More information

FOREIGN DIRECT INVESTMENT

FOREIGN DIRECT INVESTMENT FOREIGN DIRECT INVESTMENT Agenda Background Entry Policy & Procedures Investment in LLP Investment by NRIs Pledge of Shares Escrow Arrangement Transfer of Capital Reporting and Remittance Contraventions

More information

Decisions and updates

Decisions and updates Article 10, 11 and 13 - Recent Decisions and updates Seminar on Recent Updates in International Tax WIRC ICAI 23 February 2013, Mumbai CA. Shabbir Motorwala 1 Contents Overview Recent updates Recent decisions

More information

The Indian Education Sector Navigating the Tax and Legal Framework WHITE PAPER FINANCE INDIA BRAZIL CHINA

The Indian Education Sector Navigating the Tax and Legal Framework WHITE PAPER FINANCE INDIA BRAZIL CHINA The Indian Education Sector Navigating the Tax and Legal Framework WHITE PAPER INDIA BRAZIL CHINA FINANCE WHITE PAPER Overview India is an extremely attractive market for international organisations looking

More information

Doing Business in India

Doing Business in India Doing Business in India It is wiser to be in India now Fastest growing economy in the world (Current: 7%, by 2018: 7.8%) World s third largest economy (Would double in size to US$ 4 5 trillion in a decade)

More information

FINAL CA May 2018 DIRECT TAXATION

FINAL CA May 2018 DIRECT TAXATION FINAL CA May 2018 DIRECT TAXATION Test Code F 90 Branch: MULTIPLE Date: (50 Marks) compulsory. Note: All questions are Question 1 (10 marks) Computation of Book Profit for levy of MAT under section 115JB

More information