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8/14/2019 Proposed JV With Welly Investments_7 Dec 09
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December 2009
JV with Welly InvestmentsProposed Indian Operations Overview of Indian Tax and Regulatory Framework
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Slide 2NMADecember 2009
Our Understanding
Overview of Indian taxes
- Direct Tax
- Indirect Tax
Why NMA
Our Team
Overview
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Slide 3NMADecember 2009
Our Understanding
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Slide 4NMADecember 2009
India Company (Mr. Mehra and Mr. Rama being shareholders) to initially
set up factory in Pollachi for manufacturing coir fibre balesand trade
them entirely in the international market
Indian Company to subsequently enter into a JV with Welly Investment
Ltd, Hongkong (Welly)
Welly to take approx 70% stake:
- Total investment to be around $350,000
- Welly to invest $250,000 and balance $100,000 to be contributed by
the Indian promoters
Our Understanding
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Slide 5NMADecember 2009
Overview of Indian taxes
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Slide 6NMADecember 2009
Income tax a central law in India
Uniform tax year for all tax payers (Tax year April 1 ~ March 31)
Detailed transfer pricing regulations
Advance Rulings permissible in case of non-residents
Carry forward of tax loss for 8 years; tax depreciation for indefinite period
Aggressive interpretation of Permanent Establishment (PE) by Indian tax
authorities
Direct Tax Birds eye view
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7/12Slide 7NMA
December 2009
Tax on import of goods
Peak rate of customs duty -10%
Effective rate of customs duty 24.42%
No Transaction tax on import of goods Service Tax (10.3%) - tax on provision/acquisition
of specified services
CENVAT (8.24%) - tax on manufacture of goods
Central Sales Tax (2%) tax on inter-State sale ofgoods
State Value Added Tax (4% to 12.5%) - tax onintra-State sale of goods
Entry Tax - tax on entry of goods into a State
Other local levies
Customs Duty Transaction Taxes
Indirect Tax Birds eye view
India moving towards unified GST
regime by April 2010
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8/12Slide 8NMA
December 2009
Review of the Master Circular 2009 issued by RBI to check the approval
route for investing in the JV
To check whether the proposed industry falls under the Small ScaleIndustry (SSI) status
Review the Press Note 1, 2005 Series to check whether the proposedinvestor holds any other JV stake in India
Investment Strategy
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9/12Slide 9NMA
December 2009
NMA is a boutique charteredaccountancy firm engaged in
providing auditing tax and accountingservices to large corporations
NMA is a leading firm providing
Audit services;
Accounting support;
Taxation & business advisory.
NMA has been in the practice foraround 7 years and currently hasoffices in Delhi, Kolkatta and Chennaiwith a mix of chartered accountants,company secretaries and lawyers
We constantly aim to provide high-quality and efficient services to ourclients at the optimum economicvalue
New Delhi
Chennai
About RSMWhy NMA
Kolkatta
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December 2009
TransactionSupport
Services
Transfer PricingServices
Tax &BusinessAdvisory
Our Range of Services . . .
IndirectTaxServices
Attest & Risk
ConsultingServices
Our Range of Services
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Assistance in initial set-up and incorporation of the Indian Company (including assistance inopening Indian bank account)
Assistance in incorporation of the JV and the investment route
Structuring of transactions from a tax optimal perspective
Assistance in setting-up of the production facility
Assistance in initial registrations such as:
Permanent Account No (PAN), Tax Account No (TAN),Directors Identification No(DIN),
Import-Export Code (IEC), Excise registration, Service tax registration and VAT/CST
registrations
Assurance and audit related functions
Assistance in formulating finance and operational policies and procedures
Outsourcing of routine finance, accounting and regulatory/tax functions (wherever required)
What NMA can offer..
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Thank you