Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
Popular Search: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: due date for vat payment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: VAT Audit :: articles on VAT and GST in India :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: form 3cd :: cpt :: empanelment :: TDS
Budget Extravaganza »
 Budget advancement helps Centre, states start spending early
 Five things that you can expect from the Mumbai civic budget today
 GST all set for July 1 rollout but casts shadow on state budgets
 Income-Tax collection revised in Rajasthan budget
 No new taxes likely in Maharashtra Budget
 H.P. budget devoid of any financial prudence
 GST, demonetisation todecide budget priorities
 Railways to come up with mini-budget tomorrow
 Budget today, but GST kills the tax suspense
 Budget 2017 does little to expand taxpayer base, salaried still bear brunt of taxes
 Six things Finance Minister did not tell you in Budget 2017

Govt may address tax concerns of PE investors in budget
January, 31st 2015

India will resolve tax-related issues affecting long-term investment by private equity (PE) firms as the country looks to position itself as a global destination for finance like London and Singapore.

The government is aware of the concerns expressed by PE and venture capital (VC) investors and will look to address these issues in the national budget to be presented in Parliament on 28 February, junior finance minister Jayant Sinha said on Friday.

“How do you deal with friction points from a taxation point of view? I can’t speak in specifics but I am aware of concerns related to tax pass-through, REITs (real estate investment trusts),” he said at a conference organized by the Indian Private Equity and Venture Capital Association, an industry lobby group. “Whatever you can do in London and Singapore, you should be able to do in India as well,” Sinha said. “We are looking to make India a hub for global investments.”

The government is also trying to make infrastructure investment trusts more attractive by looking at the tax issues related to them, he said.

“I can’t speak about it because the budget is nearing. But we are looking at these issues to be addressed in budget,” the minister said while assuring domestic and foreign investors about India’s friendliness as an investment destination.

PE investors have been unhappy with the tax treatment meted out to them. They say tax policies are friendlier to short-term portfolio investors rather than long-term foreign direct investment (FDI). A demand of PE investors has been for a tax pass-through, which will ensure income is exempt at the fund level and only taxable in the hands of investors.

Sinha’s comment that Indian laws should be similar to those abroad is reassuring, according to Nishith Desai, founder and managing partner of Nishith Desai Associates, a law firm with offices in India, Singapore, Germany and the US.

“It gives hope the forthcoming budget will reaffirm complete pass-through to VC and PE firms and investors would be directly taxed and the tax will not be levied at the pooling level. Partial pass-through in case of REITs has already made it a non-starter,” he said while pointing out that the PE industry brought in more than $93 billion in 10 years into the country.

In a bid to attract overseas investors, the Narendra Modi-led National Democratic Alliance government has started taking a number of steps to offer a stable and predictable tax regime in India.

The government has already decided not to appeal against adverse lower court rulings in transfer-pricing cases involving under-pricing of share issuances by the local units of multinational companies to the foreign parent.

Transfer pricing is the practice of arm’s length pricing for transactions between a group’s companies based in different countries to ensure that a fair price—one that would have been charged to an unrelated party—is levied.

In addition, finance minister Arun Jaitley had promised last year that the new government will not bring in any changes to tax laws retrospectively.

Mahendra Swarup, managing director of Avigo Capital, said tax pass-through is a long pending demand of investors.

?”The government should look at establishing financial economic zones in India itself where investors can be domiciled and not taxed. Then investors will not need to route their money through countries like Mauritius and Singapore to save on tax. This will eliminate the need for setting up intermediaries and fears of the tax department questioning such structures,” he said.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Publishing Management System PMS News Management System Publishing Management System Development Online News Management System for media company custom Publishing management system development Survey management system Market Res

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions