New Delhi: India and Sweden have made amendments to the convention on avoidance of double taxation, by signing a protocol at Stockholm, Sweden. The Protocol will replace the Article concerning exchange of information in the existing Double Taxation Avoidance Convention (DTAC) between India and Sweden and will allow exchange of banking information.
DTAC for avoidance of double taxation and for the prevention of fiscal evasion with respect to taxes on income and on capital was signed on June 24, 1997 between the two countries.
India has also signed Double Tax Avoidance Agreements (DTAA) with many countries and is in the process of modifying the agreements in line with the international norms.
Currently, India has amended DTAAs with Switzerland, Australia and Singapore.
Success in my Habit
Monday, February 11, 2013
Friday, February 8, 2013
Formation of SPV (TAPI Limited) for the TAPI Pipeline Project and to permit GAIL India Ltd. to join the SPV
New Delhi: The Union Cabinet today gave its approval for formation of the Special Purpose Vehicle (SPV) for the Turkmenistan-Afghanistan-Pakistan-India(TAPI) Pipeline Project and to permit GAIL India Ltd. to join the SPV.
The four countries involved in the TAPI Gas pipeline project, signed an Inter-Governmental Agreement along with a Gas Pipeline Framework Agreement(GPFA). To accelerate the project, parties have formed the Minister Level Steering Committee and Technical Working Group (TWO). Suitable provisions for security & safety of the pipeline have been made in the Inter-Governmental Agreement (IGA) and Gas Pipeline Framework Agreement (GPFA).
In the meeting of the 16th Steering Committee held on 23rd September, 2012, all parties reaffirmed their commitment and intention to fast track this important regional co-operation project. As a way forward, Turkmenistan suggested the formation of a SPV by the TAPl members. The SPV would take up the Feasibility Study and Design work of the TAPl pipeline to meet the agreed timelines for the project, as well as search for a consortium lead.
Turkmenistan and Pakistan agreed to the formation of TAPl Ltd. considering it to be in consonance with the GPFA. Afghanistan also agreed to the formation of TAPl Ltd. so long as there was consensus amongst the Parties.
TAPl Ltd. is required to have an initial contribution of USD 20 million that is USD 5 million from an identified entity from each of the four participating countries. GAIL, being a Navratna Company, is empowered to make an investment of this level for India.
GAIL has agreed to make an investment upto USD 5 million in the proposed SPV that is TAPI Ltd. An active interest in the project by all the partner countries at this stage would sustain the credibility of the project, and generate interest in the international market and could eventually pave the way for selection of an appropriate consortium leader in the future.
Background:
Based on an 'in-principle' approval of the Cabinet on 18th May, 2006, India joined the Turkmenistan-Afghanistan-Pakistan (TAP) Project in April, 2008 and thereafter, the name of the project stood amended to Turkmenistan-Afghanistan-Pakistan-India (TAPl) Gas Pipeline Project.
The four countries involved in the TAPI Gas pipeline project, signed an Inter-Governmental Agreement along with a Gas Pipeline Framework Agreement(GPFA). To accelerate the project, parties have formed the Minister Level Steering Committee and Technical Working Group (TWO). Suitable provisions for security & safety of the pipeline have been made in the Inter-Governmental Agreement (IGA) and Gas Pipeline Framework Agreement (GPFA).
In the meeting of the 16th Steering Committee held on 23rd September, 2012, all parties reaffirmed their commitment and intention to fast track this important regional co-operation project. As a way forward, Turkmenistan suggested the formation of a SPV by the TAPl members. The SPV would take up the Feasibility Study and Design work of the TAPl pipeline to meet the agreed timelines for the project, as well as search for a consortium lead.
Turkmenistan and Pakistan agreed to the formation of TAPl Ltd. considering it to be in consonance with the GPFA. Afghanistan also agreed to the formation of TAPl Ltd. so long as there was consensus amongst the Parties.
TAPl Ltd. is required to have an initial contribution of USD 20 million that is USD 5 million from an identified entity from each of the four participating countries. GAIL, being a Navratna Company, is empowered to make an investment of this level for India.
GAIL has agreed to make an investment upto USD 5 million in the proposed SPV that is TAPI Ltd. An active interest in the project by all the partner countries at this stage would sustain the credibility of the project, and generate interest in the international market and could eventually pave the way for selection of an appropriate consortium leader in the future.
Background:
Based on an 'in-principle' approval of the Cabinet on 18th May, 2006, India joined the Turkmenistan-Afghanistan-Pakistan (TAP) Project in April, 2008 and thereafter, the name of the project stood amended to Turkmenistan-Afghanistan-Pakistan-India (TAPl) Gas Pipeline Project.
Portugal keen to invest in infra, water sectors, says envoy
Kolkata: Portugal is keen on investing in the Indian infrastructure, water management, waste management and alternative energy sectors.
According to Jorge Roza de Oliveira, Portugal’s Ambassador in India , the country was looking for opportunities to invest in emerging economies such as India, China and some of the Gulf nations.
“Ideally, we should look at investments in emerging economies like India. There is a huge prospect for bilateral trade but it is yet to be explored to its full potential,” de Oliveira said during an interactive session organised by the Confederation of Indian Industry (CII) here on Thursday.
India’s imports from Portugal stood at nearly $310 million in 2011-12 while exports stood at $525 million.
“I would be happy if the bilateral trade move up to $ 1 billion,” de Oliveira said.
Some Portugal-based companies, he said, already have a presence in electrical products, tools, solar energy and cements.
Trade Delegation
According to de Oliveira, a trade delegation headed by the Foreign Minister of Portugal is expected to arrive here in the first week of March. The trade delegation will comprise representatives from 50-odd companies.
The country, he said, was also planning to promote tourism through films. Tourism accounts for nearly 15 per cent of Portuagal’s gross domestic product.
According to Jorge Roza de Oliveira, Portugal’s Ambassador in India , the country was looking for opportunities to invest in emerging economies such as India, China and some of the Gulf nations.
“Ideally, we should look at investments in emerging economies like India. There is a huge prospect for bilateral trade but it is yet to be explored to its full potential,” de Oliveira said during an interactive session organised by the Confederation of Indian Industry (CII) here on Thursday.
India’s imports from Portugal stood at nearly $310 million in 2011-12 while exports stood at $525 million.
“I would be happy if the bilateral trade move up to $ 1 billion,” de Oliveira said.
Some Portugal-based companies, he said, already have a presence in electrical products, tools, solar energy and cements.
Trade Delegation
According to de Oliveira, a trade delegation headed by the Foreign Minister of Portugal is expected to arrive here in the first week of March. The trade delegation will comprise representatives from 50-odd companies.
The country, he said, was also planning to promote tourism through films. Tourism accounts for nearly 15 per cent of Portuagal’s gross domestic product.
India-Uruguay to explore opportunities in iron ore mining and steel
Kolkata: India and Uruguay have signed a letter of intent (LoI) to explore investment opportunities in iron ore and steel sector. The alliance will also encourage exchange of technical know how in iron ore and steel related raw materials.The LoI was signed between D R S Chaudhary, union steel secretary steel and Mr Roberto Kreimerman, Uruguay's minister for industry, energy & mining during a visit by union steel minister Beni Prasad Verma.
The steel minister met Uruguay president, Mr. Jose Mujica in Montevideo on February 6, 2013. The two leaders discussed steps to improve co-operation in the mining sector between the two countries and increase bilateral trade turnover in the coming years.
The minister later met Mr. Roberto Kreimerman and discussed various aspects of joint exploration and production of minerals in the Latin American country. Speaking on the occasion Mr Verma said, "There is a huge potential for mining of iron ore, granite, gold and diamond, which can be explored by Indian companies in Uruguay. I believe the two countries can collaborate to utilise each others strength in areas of mineral exploration."
The steel minister invited the Uruguayan trade and industry to participate in the Indian Trade Exhibitions and conduct roadshows for more joint ventures, transfer of technology and inviting Indian investment for setting up production facilities in Uruguay for exports to other Latin American countries.
The visit of the Indian delegation was successful in establishing a firm base for mineral exploration and production by Indian firms in Uruguay. Apart from the minister and steel secretary, other delegation members included U P Singh, joint secretary, C S Verma, chairman and managing director, NMDC and other senior steel ministry officials.
The steel minister met Uruguay president, Mr. Jose Mujica in Montevideo on February 6, 2013. The two leaders discussed steps to improve co-operation in the mining sector between the two countries and increase bilateral trade turnover in the coming years.
The minister later met Mr. Roberto Kreimerman and discussed various aspects of joint exploration and production of minerals in the Latin American country. Speaking on the occasion Mr Verma said, "There is a huge potential for mining of iron ore, granite, gold and diamond, which can be explored by Indian companies in Uruguay. I believe the two countries can collaborate to utilise each others strength in areas of mineral exploration."
The steel minister invited the Uruguayan trade and industry to participate in the Indian Trade Exhibitions and conduct roadshows for more joint ventures, transfer of technology and inviting Indian investment for setting up production facilities in Uruguay for exports to other Latin American countries.
The visit of the Indian delegation was successful in establishing a firm base for mineral exploration and production by Indian firms in Uruguay. Apart from the minister and steel secretary, other delegation members included U P Singh, joint secretary, C S Verma, chairman and managing director, NMDC and other senior steel ministry officials.
India Inc's investment abroad jumps 179% in January
Mumbai: Overseas direct investment by India Inc soared by 179 per cent in the month of January to $3.303 billion against $1.184 billion in the year-ago period.
This investment comes even as Indian companies are holding back investments in the country due to adverse demand conditions, both in the domestic and overseas markets.
Overseas investment by Indian companies is in the form of equity, debt, and guarantees issued.
The Big Ones
Among the big overseas investments made by Indian companies in January 2013 include: Bharat Petroresources Ltd ($439 million), Cox & Kings India ($249 million), Essar Steel ($155 million), Tata International ($128 million), and Videocon Oil Ventures ($127 million).
Downturn in overseas markets may be prompting Indian companies to pick up overseas assets at a relatively cheaper valuation, said a banker.
Indian companies' overseas investment in the first 10 months of the current financial year have been about $3 billion lower, aggregating $23.325 billion ($26.468 billion).
The peak overseas investment in the current financial year was in the month of June when Indian corporates made investments aggregating $3.532 billion.
This investment comes even as Indian companies are holding back investments in the country due to adverse demand conditions, both in the domestic and overseas markets.
Overseas investment by Indian companies is in the form of equity, debt, and guarantees issued.
The Big Ones
Among the big overseas investments made by Indian companies in January 2013 include: Bharat Petroresources Ltd ($439 million), Cox & Kings India ($249 million), Essar Steel ($155 million), Tata International ($128 million), and Videocon Oil Ventures ($127 million).
Downturn in overseas markets may be prompting Indian companies to pick up overseas assets at a relatively cheaper valuation, said a banker.
Indian companies' overseas investment in the first 10 months of the current financial year have been about $3 billion lower, aggregating $23.325 billion ($26.468 billion).
The peak overseas investment in the current financial year was in the month of June when Indian corporates made investments aggregating $3.532 billion.
Foreign Exchange Earnings from Tourism Increases by Twenty Percent
New Delhi: The growth rate in Foreign Exchange Earnings(FEEs) from tourism in Rupee terms in January 2013 over January 2012 was 20.6%. Foreign Tourist Arrivals (FTAs) also showed a growth of 2.6% in January 2013 over January 2012.
The following are the important highlights regarding FTAs and FEEs from tourism during the month of January 2013.
Foreign Tourist Arrivals (FTAs):
FTAs during the Month of January 2013 was 6.99 lakh as compared to FTAs of 6.81 lakh during the month of January 2012 and 6.23 lakh in January 2011.
There has been a growth of 2.6% in January 2013 over January 2012 as compared to a growth of 9.4% registered in January 2012 over January 2011.
Foreign Exchange Earnings (FEEs) from Tourism in Indian rupee terms and US$ terms
FEEs during the month of January 2013 were Rs.10,398 crore as compared to Rs.8,623 crore in January 2012 and Rs.5,777 crore in January 2011.
The growth rate in FEEs in rupee terms in January 2013 over January 2012 was 20.6% as compared to 49.3% in January 2012 over January 2011.
FEEs in US$ terms during the month of January 2013 were US$ 1.91 billion as compared to FEEs of US$ 1.68 billion during the month of January 2012 and US$ 1.27 billion in January 2011.
The growth rate in FEEs in US$ terms in January 2013 over January 2012 was 13.6% as compared to the growth of 32.1% in January 2012 over January 2011.
Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) on the basis of data received from major ports and Foreign Exchange Earnings (FEEs) from tourism details available from Reserve Bank of India.
The following are the important highlights regarding FTAs and FEEs from tourism during the month of January 2013.
Foreign Tourist Arrivals (FTAs):
FTAs during the Month of January 2013 was 6.99 lakh as compared to FTAs of 6.81 lakh during the month of January 2012 and 6.23 lakh in January 2011.
There has been a growth of 2.6% in January 2013 over January 2012 as compared to a growth of 9.4% registered in January 2012 over January 2011.
Foreign Exchange Earnings (FEEs) from Tourism in Indian rupee terms and US$ terms
FEEs during the month of January 2013 were Rs.10,398 crore as compared to Rs.8,623 crore in January 2012 and Rs.5,777 crore in January 2011.
The growth rate in FEEs in rupee terms in January 2013 over January 2012 was 20.6% as compared to 49.3% in January 2012 over January 2011.
FEEs in US$ terms during the month of January 2013 were US$ 1.91 billion as compared to FEEs of US$ 1.68 billion during the month of January 2012 and US$ 1.27 billion in January 2011.
The growth rate in FEEs in US$ terms in January 2013 over January 2012 was 13.6% as compared to the growth of 32.1% in January 2012 over January 2011.
Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) on the basis of data received from major ports and Foreign Exchange Earnings (FEEs) from tourism details available from Reserve Bank of India.
Foreign Exchange Earnings from Tourism Increases by Twenty Percent
New Delhi: The growth rate in Foreign Exchange Earnings(FEEs) from tourism in Rupee terms in January 2013 over January 2012 was 20.6%. Foreign Tourist Arrivals (FTAs) also showed a growth of 2.6% in January 2013 over January 2012.
The following are the important highlights regarding FTAs and FEEs from tourism during the month of January 2013.
Foreign Tourist Arrivals (FTAs):
FTAs during the Month of January 2013 was 6.99 lakh as compared to FTAs of 6.81 lakh during the month of January 2012 and 6.23 lakh in January 2011.
There has been a growth of 2.6% in January 2013 over January 2012 as compared to a growth of 9.4% registered in January 2012 over January 2011.
Foreign Exchange Earnings (FEEs) from Tourism in Indian rupee terms and US$ terms
FEEs during the month of January 2013 were Rs.10,398 crore as compared to Rs.8,623 crore in January 2012 and Rs.5,777 crore in January 2011.
The growth rate in FEEs in rupee terms in January 2013 over January 2012 was 20.6% as compared to 49.3% in January 2012 over January 2011.
FEEs in US$ terms during the month of January 2013 were US$ 1.91 billion as compared to FEEs of US$ 1.68 billion during the month of January 2012 and US$ 1.27 billion in January 2011.
The growth rate in FEEs in US$ terms in January 2013 over January 2012 was 13.6% as compared to the growth of 32.1% in January 2012 over January 2011.
Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) on the basis of data received from major ports and Foreign Exchange Earnings (FEEs) from tourism details available from Reserve Bank of India.
The following are the important highlights regarding FTAs and FEEs from tourism during the month of January 2013.
Foreign Tourist Arrivals (FTAs):
FTAs during the Month of January 2013 was 6.99 lakh as compared to FTAs of 6.81 lakh during the month of January 2012 and 6.23 lakh in January 2011.
There has been a growth of 2.6% in January 2013 over January 2012 as compared to a growth of 9.4% registered in January 2012 over January 2011.
Foreign Exchange Earnings (FEEs) from Tourism in Indian rupee terms and US$ terms
FEEs during the month of January 2013 were Rs.10,398 crore as compared to Rs.8,623 crore in January 2012 and Rs.5,777 crore in January 2011.
The growth rate in FEEs in rupee terms in January 2013 over January 2012 was 20.6% as compared to 49.3% in January 2012 over January 2011.
FEEs in US$ terms during the month of January 2013 were US$ 1.91 billion as compared to FEEs of US$ 1.68 billion during the month of January 2012 and US$ 1.27 billion in January 2011.
The growth rate in FEEs in US$ terms in January 2013 over January 2012 was 13.6% as compared to the growth of 32.1% in January 2012 over January 2011.
Ministry of Tourism compiles monthly estimates of Foreign Tourist Arrivals (FTAs) on the basis of data received from major ports and Foreign Exchange Earnings (FEEs) from tourism details available from Reserve Bank of India.
Tata Advanced Materials in pact with Strongfield Technologies
Bengaluru: Tata Advanced Materials Ltd (TAML) has signed an MoU with UK-based Strongfield Technologies Ltd, manufacturer and supplier of high-tech components and equipment for defence and space applications.
The MoU also facilitates the design, manufacture and supply of composite products for aerospace, armour, defence, transportation and infrastructure sectors. Paul Rogers, Director of Outsourcing, STL, said: “STL is honoured to collaborate with TAML for indigenous composite production of components and structures for its defence projects. STL evaluated TAML facilities in 2012, and was happy to see the high standards of quality and capability showcased.”
Philip Dunne MP, Minister for Defence Equipment, Support and Technology with responsibility for defence procurement and defence exports said, “This important MoU between Tata Advanced Materials Ltd and Strongfield Technologies Ltd for the tender to supply to Indian defence aerial targets. This is a tangible example of the significance of Aero India in articulating successive collaborations between UK and India.”
The MoU also facilitates the design, manufacture and supply of composite products for aerospace, armour, defence, transportation and infrastructure sectors. Paul Rogers, Director of Outsourcing, STL, said: “STL is honoured to collaborate with TAML for indigenous composite production of components and structures for its defence projects. STL evaluated TAML facilities in 2012, and was happy to see the high standards of quality and capability showcased.”
Philip Dunne MP, Minister for Defence Equipment, Support and Technology with responsibility for defence procurement and defence exports said, “This important MoU between Tata Advanced Materials Ltd and Strongfield Technologies Ltd for the tender to supply to Indian defence aerial targets. This is a tangible example of the significance of Aero India in articulating successive collaborations between UK and India.”
Indian Potash in deal with Belarusian company
New Delhi: Indian Potash Ltd (IPL) has signed a contract with Belarusian Potash Company (BPC) to import 1 million tonne of muriate of potash (MOP) at $427 a tonne this calendar year.
The pricing of the new deal is about 15 per cent lower than the previous contract signed at $490.
BPC, a joint venture distributor of Belaruskali and Uralkali, will begin MOP supplies to IPL from this month till January 2014.
“The delivery price of potash fertiliser for India has been set at $427 a tonne on CFR basis. BPC deliveries under the contract with IPL will total 1 million tonnes,” BPC said in a statement.
“We strongly believe that the agreement bringing us one step forward in restoring potash demand will influence positively both the domestic and global potash market,” said Valery Ivanov, CEO of BPC.
India, which is dependent on imports to meet its potash demand, imported about 5.5 million tonnes of the nutrient in the past 18 months.
The IPL-BPC deal is probably the first of its kind to be announced by the Indian fertiliser makers, who are going slow in signing new contracts this year as the country still has huge unsold stocks of the nutrients.
Erratic monsoon and high prices had impacted the fertiliser offtake last year, resulting in stock build-up.
Besides, the Government had recently told the fertiliser companies not to bring in any nutrients till the end of current fiscal.
IPL, the largest importer of potash in the country, expects to negotiate with other suppliers for another million tonnes in the current year, said Managing Director P.S. Gehlaut.
“We expect to bring in the MOP shipments from BPC into the country from April onward,” Gehlaut said.
The pricing of the new deal is about 15 per cent lower than the previous contract signed at $490.
BPC, a joint venture distributor of Belaruskali and Uralkali, will begin MOP supplies to IPL from this month till January 2014.
“The delivery price of potash fertiliser for India has been set at $427 a tonne on CFR basis. BPC deliveries under the contract with IPL will total 1 million tonnes,” BPC said in a statement.
“We strongly believe that the agreement bringing us one step forward in restoring potash demand will influence positively both the domestic and global potash market,” said Valery Ivanov, CEO of BPC.
India, which is dependent on imports to meet its potash demand, imported about 5.5 million tonnes of the nutrient in the past 18 months.
The IPL-BPC deal is probably the first of its kind to be announced by the Indian fertiliser makers, who are going slow in signing new contracts this year as the country still has huge unsold stocks of the nutrients.
Erratic monsoon and high prices had impacted the fertiliser offtake last year, resulting in stock build-up.
Besides, the Government had recently told the fertiliser companies not to bring in any nutrients till the end of current fiscal.
IPL, the largest importer of potash in the country, expects to negotiate with other suppliers for another million tonnes in the current year, said Managing Director P.S. Gehlaut.
“We expect to bring in the MOP shipments from BPC into the country from April onward,” Gehlaut said.
Starbucks expects India to be among top 5 global markets in long term
New Delhi: US coffee chain Starbucks, which opened its seventh store in the country on Wednesday, expects India to be among the top five global markets for the company in the long term.
John Culver, President, Starbucks Coffee China and Asia Pacific, said, “We are committed to the Indian market for the long term and we are looking to grow our business aggressively, expand stores, make investments and offer locally relevant innovations.”
He did not specify the company’s expansion plans or investment figures but said that India is expected to be among the top five global markets of the company in the long term.
This is the company’s flagship store in New Delhi. It already has presence in the NCR region through two stores at the Delhi International Airport, besides four stores in Mumbai.
Starbucks entered the Indian market in October 2012, and its stores operate under a 50:50 joint venture partnership between Starbucks Coffee Co and Tata Global Beverages called Tata Starbucks Ltd.
He also said that the company was committed to ethically sourcing and roasting coffee through its partnership with Tata Coffee to elevate the story of the Indian coffee farmer, a unique initiative being undertaken in India.
The store at Delhi reflected examples of Indian craft of weaving and sported handicrafts made by local artists. The company has kept the Indian palette in mind as the menu includes Indian cuisine like Murg Makhani Pie, Mutton Seek in Roomali Roti, besides also offering Tata Tazo tea which is a co-branded product under its partnership with Tata Global Beverages.
On future locations that have been identified for opening new stores, Avani Saglani Davda, CEO, Tata Starbucks, said India offers diverse growth opportunities and the company will thoughtfully open stores in locations, “where customers want and expect us to be.”
John Culver, President, Starbucks Coffee China and Asia Pacific, said, “We are committed to the Indian market for the long term and we are looking to grow our business aggressively, expand stores, make investments and offer locally relevant innovations.”
He did not specify the company’s expansion plans or investment figures but said that India is expected to be among the top five global markets of the company in the long term.
This is the company’s flagship store in New Delhi. It already has presence in the NCR region through two stores at the Delhi International Airport, besides four stores in Mumbai.
Starbucks entered the Indian market in October 2012, and its stores operate under a 50:50 joint venture partnership between Starbucks Coffee Co and Tata Global Beverages called Tata Starbucks Ltd.
He also said that the company was committed to ethically sourcing and roasting coffee through its partnership with Tata Coffee to elevate the story of the Indian coffee farmer, a unique initiative being undertaken in India.
The store at Delhi reflected examples of Indian craft of weaving and sported handicrafts made by local artists. The company has kept the Indian palette in mind as the menu includes Indian cuisine like Murg Makhani Pie, Mutton Seek in Roomali Roti, besides also offering Tata Tazo tea which is a co-branded product under its partnership with Tata Global Beverages.
On future locations that have been identified for opening new stores, Avani Saglani Davda, CEO, Tata Starbucks, said India offers diverse growth opportunities and the company will thoughtfully open stores in locations, “where customers want and expect us to be.”
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