A leading industry body has recommended an eight-point financial package to encourage investments flowing in and out of the country. According to Federation of Indian Chambers of Commerce and Industry (FICCI), the Indian economy is likely to have a foreign trade turnover of over 350 billion USD (Rs.13.9 trillion) and foreign investment inflows of 30 billion USD (Rs.1.2 trillion). Incomes earned by overseas subsidiaries of Indian companies should be exempted from all taxes to encourage them to repatriate their earnings into India, the industry body recommended. Currently, a person is eligible for tax credit paid outside India with respect to doubly taxed income. This is equivalent to the tax at Indian rates or rates of the said country, whichever is lower.
FICCI has recommended consolidating such tax liability. In case when tax paid to the foreign country on income from outside sources is more than what it would be payable in India, the assessed should be eligible for tax credit deduction in respect of the excess part of the tax liability as well, like other countries.
FICCI further suggested that the dividend distribution tax be brought under the Double Taxation Avoidance Agreement (DTAA) umbrella. This would enable overseas holding companies with Indian subsidiaries to offset distribution taxes paid in India from tax payable by them in their respective countries.
The body has also urged the Government to follow the example of other countries such as the Netherlands, Singapore, Luxembourg, Ireland, Spain and Austria, who have redesigned their taxation laws to attract outbound investments. The current provisions require that the taxpayer take arithmetic means of prices. FICCI said this,, should be modified to use other statistical methods such as median of prices.
It also suggested measures to ensure that fringe benefit tax on employee stock option scheme is eligible for tax credits under the DTAA. FICCI has also urged proper and timely implementation of an efficient goods and services tax regime that would eliminate distortions and lower taxpayers' burden. (IANS)
Source:- India Business News
Monday, November 26, 2007
Package by FICCI to encourage investment
Increase in NPAs matter of concern
The "increase" in Non-performing Assets (NPAs) ot banks is a matter of concern, former All India Banks Employees Association (AIBEA) vice president P S Sunderesan said on Sunday. Addressing the 20th Conference of All India State Bank of Patiala Employees Federation and Sixth Employees Union Conference of State Bank of Patiala, Sunderesan alleged that in the last three years Rs 52,000 crore of fresh NPA had been added to the banking system. The total NPA of the banking system has touched a level of Rs three lakh crores, if interest is added to it, he claimed.
He said the All India Bank Employees Association had a list of "defaulters" where the NPA level is one crore and above in each account. (PTI)
Source:- India Business News
'Telecom decisions to result high growth'
Amid a spate of requests to the Prime Minister to step in and set things right in the telecom sector, Communications Minister A Raja has said all his decisions regarding the sector were aimed at lowering tariffs and encouraging growth. "I am equally concerned about the image of India across the globe and assure you that all the decisions taken by me will be guided by the larger interest of the public, competition and growth of telecom sector," Raja said in a letter to Prime Minister Manmohan Singh, while sharing the concern expressed by Cabinet colleague Kamal Nath about the sector.
Nath had suggested to the Prime Minister that a Group of Ministers (GoM) be set up to sort out issues like spectrum allocation norms. Raja, however, feels it is not necessary.
"Since the Department has decided to continue with the existing policy (first-cum-first-served) for processing of applications, the suggestion of Kamal Nath for setting up GoM is out of context," the Communications Minister has said.Raja's letter comes at a time when the country's booming telecom industry comprising GSM and CDMA operators is divided in the middle over norms for allocating spectrum to telecom companies and use of dual technology for mobile services.
Earlier Reliance ADAG Chairman Anil Ambani had sought the Prime Minister's intervention to see that extra frequency lying with GSM operators is returned. "I do share concern of my colleague (Nath) regarding international investment in the telecom sector. However, I would like to bring to your kind notice that increasing competition will give further boost to the investment in the telecom sector. (PTI)
Source:- India Business News
Tata favourite to buy Jaguar, Land Rover
Tata, the Indian conglomerate headed by Ratan Tata, has moved into pole position in the 1.5 billion pounds race to buy Jaguar and Land Rover, two of Britain's most prestigious car marques. Quoting sources close to the negotiations, a daily on Sunday reported that positive meetings last week between Ravi Kant, managing director of Tata Motors, and trade union and government officials have given the Indian conglomerate an edge over its rivals. It still faces stiff competition from One Equity, an American private-equity group, and Mahindra and Mahindra, the Indian car group that is bidding with Apollo, another American buyout firm.
Ford, the American automotive giant that is selling the two marques, could choose a preferred bidder within the next three weeks. The company is selling Jaguar and Land Rover as a single unit. One Equity's bid is led by Jac Nasser, a former chief executive at Ford.While Jaguar is loss-making - it is feared to lose about 500 million dollars this year - Land Rover is having a purple patch. The report quoted sources at the bidding teams to say they expect the business to make more than 1 billion dollars this year, a remarkable result given the weakness of the US dollar. America is one of Jaguar and Land Rover's biggest markets. (PTI)\
Source:- India Business News
Sensex zooms 458 pts in early trade
The Bombay Stock Market benchmark Sensex gained 458 points in early trade today on brisk buying by funds. The 30-share index, which closed with a gain of 326 points on Friday, shot up by 457.69 points to 19,310.56 point in the first five minutes of trade. The wide-based National Stock Exchange index, Nifty, rose by 129.25 points to 5,737.85 as most of the heavy-weight shares recorded notable gains. The trading sentiment was boosted by reports of a steep rise in Asian stock markets such as Hang Seng and Kospi. (PTI)
Source:- India Business News
Friday, November 23, 2007
FICCI for Digital Rights Management system
The Federation of Indian Chambers of Commerce and Industry (FICCI), is pushing for the adoption of an efficient ?Digital Rights Management? (DRM) system, saying that this would give a fillip to the fast-growing Indian digital entertainment and media industry. FICCI, and professional services firm 'Price Waterhouse Coopers', conducted a study on the Indian entertainment and media industry, and on Friday released their report "Entertainment and Media: India Going Digital" here to coincide with the start of the International Film Festival of India (IFFI).The report called for an efficient DRM system "that allows management and protection of digital content". It added that it was the need of the hour for India to have "technology-agnostic, forward-looking and robust regulatory policies balanced with self-regulation and cross-industry agreements".
DRM is an umbrella term that refers to the access-control technologies used by publishers and copyright holders to limit the use of digital media or devices. It may also refer to restrictions associated with specific instances of digital works or devices. DRM is sometimes seen as a controversial issue. Advocates argue it is necessary for copyright holders to prevent unauthorised duplication of their work to ensure continued revenue streams. However, critics says copyright holders use DRM to restrict use of copyrighted material in ways not included in the statutory common law, or constitutional grant of exclusive commercial use to them.
FICCI officials said: ?the study showed the rise of digital media threw up issues that Indian stakeholders need to take cognizance of.? Among these, copyright issues are the foremost which impact exploitation of digital content across new media. "Technology issues, especially those relating to inter-operability of equipments and devices at consumer premises are also to be dealt with," said FICCI's media coordinator Taresh Arora. Digital piracy, though at a nascent stage, will also be a challenge for Indian stakeholders with the proliferation of digital media, Arora argued while stressing the need for a DRM system.
FICCI admitted that there would be a price to pay for the introduction of DRM systems.
"An issue for content providers and distributors is the degree to which they utilize DRM software to control distribution. DRM restricts the ability of consumers to copy and distribute products. The benefit to content providers is that DRM limits unauthorised distribution. There is also a cost. "Restrictions on usage, which include the inability of content downloaded on one device to play on another, can discourage some consumers from buying product through legitimate channels. Companies are grappling with this trade-off," the report said.
FICCI said, that because of increasing pressure on the industry itself, music companies are considering releasing music over the Internet without copyright protection, which would fuel internet distribution and revenue growth by allowing downloaded music to be played on virtually any device. "With physical distribution falling rapidly, labels are becoming more receptive to strategies that enhance digital distribution even as it reduces impediments to unauthorised distribution," the report said. "Companies are experimenting with different approaches to intellectual property management. It is expected that technologies, methodologies, and business models will continue to evolve during the next several years," it added. (IANS)
Source:- India Business News
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