Sunday, August 12, 2007

A new website - Risksopportunities. Read about Indian global companies and much more...

Hi Readers

Erich Neilsen, a LinkedIn contact of mine and a consultant to boot decided to launch a new website. I have contributed an article, relating to the growing trend of Indian companies going outbound.

Liberalisation has made it possible for Indian companies to step beyond India's borders. However, not all is hunky dory on the tax front. Foreign dividends are subject to tax in India, when repatriated. Because of this Indian companies going outbound have to structure their investments carefully. Generally, holding companies are set up in favourable jurisidictions. If only the tax laws in India were changed to tax foreign dividends at lower rates or provide for participation exemption, dividend repatriation back into India from overseas investments would be less taxing for Indian multinationals.

I have recently read in the newspapers that the Indian revenue authorities are hell bent on examining recent outbound acquisitions to claim their share of the tax pie. The Indian government would certainly be missing the woods for the trees, if it attempts to just add to the litigation and does not bring about suitable amendments in tax laws.

This is the age of outbound investments and it is time for the Indian government to act as a true business partner.

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