Doing business in India-an event organised in London-U.K. on September 17, 2008
September, 20th 2008
The Institute of Chartered Accountants of India (ICAI) was set up as a Statutory body under Chartered Accountants Act, 1949, an Act enacted by Parliament of India. It regulates the accountancy and auditing profession in India.
CA. Ved Jain, President, ICAI was invited for an event Doing business in India-Legal & Regulatory Perspective in London. This event has been organized by London Society Business Board, London, U.K. The seminar focuses on encouraging business relations between the two countries in view of the conducive environment- strong economy fundamentals, recent legislative changes and second generation reforms in public, financial & agriculture sector etc. The President is being accompanied by the Vice-President of ICAI, CA Uttam Prakash Agarwal. This visit acquires a significant dimension especially as India and U.K. share the commonalities in the matters of politics, higher education, Multilateralism in international politics & financial architecture, transparency in the operations etc., besides the common business language.
During this Event, President, CA Ved Jain made a presentation on the Legal & Regulatory Perspective of Doing Business in India and potential available in varied sectors. To take this forward, the role of Chartered Accountants becomes even more pertinent as the CAs are globally considered to be key players in business, industry and financial services. In India, there are various regulatory bodies functioning such as Foreign Investment Promotion Board (FIPB), Securities Exchange Board of India (SEBI), Central Board of Direct Taxes (CBDT), Central Board of Excise and Customs(CBEC), Authority for Advance Rulings (AAR) etc. Therefore the role of a Chartered Accountant becomes important for not only effective formulation of strategy for growth and development but also for ensuring compliance to various rules and regulations. The expertise of CA is required to achieve the objectives of accountability , transparency and efficiency.
Besides discussing the various modes of investment ranging from registering as an Indian company, acting as a foreign company, working under the Limited Liability Partnerships (LLPs), opening up branch offices in India to Foreign Direct Investment (FDI), Foreign Institutional Investment (FII), acquisition of shares, Foreign technology transfers, Preference Shares etc., the focus will also be on one of the important considerations to be taken into account while making investment/ doing business in India i.e. Taxation. Besides Double Taxation Avoidance Agreement (DTAA), which India has entered with 65 countries to prevent double taxation and fiscal evasion with respect to Income Tax and Capital Gains, a glimpse of various provisions of different taxes prevailing in India such as Corporate tax, Personal Income Tax, Capital Gain Tax, Fringe Benefit Tax, Service Tax etc will also be provided to educate investors.
ICAI has decided to fully converge with International Financial Reporting Standards (IFRSs) issued by the International Accounting Standards Board (IASB) from the accounting periods commencing on or after 1st April, 2011. This would ensure more transparency in preparation of financial statements that will facilitate the prospective investors in U.K and other countries to better understand, compare and take investment & financing decisions. ICAI has launched a slew of training programs and seminars to train professionals in the new concepts of IFRS.