Our experts are invited by the media to express their opinion on developments relevant to business & industry.
- Telecom: Maya, Telecom and 2012
Last year was a tough year for the telecom industry. In the new year, operators will need to run tight ships and focus on their core business to survive well.
- Personal Tax: Investment in house property
This article aims to address issues and opportunities related to investment in house property.
- Corporate Tax: GAAR deferral: Finance minister yet again sends out a positive signal
The finance minister’s statement has brought certainty for the industry which awaits confirmation from the government about its final view. More in this article by our Tax Leader Satya Poddar.
- Personal Tax: Esops below exercise price: How companies can keep employees incentivised
Can companies step in and deal with underwater stock options? Yes, they can, but there is no one-size-fits-all approach, says Sonu Iyer, our Tax Partner in this article.
- Personal Tax: When company stock options turn sour
Stock options are long-term reward programs and should not be seen as an overnight billionaire program.
- Infrastructure: Learning from the Chinese
Indian Railways require radical reforms that can rescue it from becoming an antique relic. The real strategy lies in thinking big and planning ahead for future needs.
- Mining & Metals: Resolving imported coal crisis
India needs a clear national policy for imported coal-based power projects that may be applied in the rarest situations as it does vitiate the basic framework of competitive bidding.
- Corporate Tax: Companies Bill: Role of economy in global arena will increase
Four years after the Companies Bill was first launched for discussions and deliberations, it appears that the new law may be finding its way through.
- Income Tax: Tax paid by co on employees behalf a non-monetary perquisite
The Indian Income Tax Act does not specifically clarify whether the tax can be paid by the employer on salary and monetary perquisites. This issue has been a matter of active debate.
- Income Tax: Tax disallowances on marked-to-market loss
By disallowing notional losses and gain, the committee on tax accounting standards seeks to provide parity in computation of taxable income.
- Corporate Tax: Piercing the veil on foreign offices
While it may seem strange at first glance that the RBI is looking into matters related to immigration compliance, the reason for it seems to be national security.
- Indirect Tax: The politics of GST
Early GST implementation can help kickstart growth and investments. It is important that political parties at the Centre and States sense the urgency and work towards consensus on this key tax reform.
- Corporate Tax: A welcome addition to the reform agenda
The introduction of the indirect transfer provisions with retrospective effect was bad politics and bad economics, says our Tax leader Satya Poddar.
- Insurance: Setting up a “well-lit springboard” for insurance industry
The increase in FDI in insurance to 49% from the current 26% will send a positive signal to foreign insurers, says this article by our Insurance Advisory Services leader, Rohan Sachdev.
- Corporate Tax: Karmik justice for Vodafone in India?
The Government of India might roll back retrospective amendment on indirect transfers. Get the complete article by our tax leader, Sudhir Kapadia.
- Policy & Regulatory: B2C e-biz — Not added to cart
Indian retailers who deal mainly in physical sale of goods and a bit of Internet-based sales may need to restructure suitably to ensure the business is FDI-compliant.
- Personal Tax: First-time investors in RGESS to get tax breaks
To promote investment flow into the capital market and widen the retail investor base in the Indian security market, the Indian government has launched the Rajiv Gandhi Equity Saving Scheme (RGESS). This article discusses nuances of the scheme.
- Corporate Tax: Panel has delivered, now govt should
The postponement of GAAR will put to rest the present uncertainty and distrust surrounding India’s tax policy.
- Corporate Tax: Shome Committee sends out positive signal
The Shome Committee report is a triumph of democracy over tax bureaucracy, says our Tax leader Satya Poddar in this article.
- Indirect Tax: Realty check for new service tax regime
The service tax regime has been overhauled vide Budget 2012 — the 18-year-old classification-based service tax law has been replaced with ‘negative list’ based levy. This has widened the scope of services manifold.
- Corporate Tax: Uneasy sits the royalty tag on software-makers
Taxpayers contend that revenues from software licensing transactions are not for ‘use of copyright’, which is usually taxed as ‘royalty’ in India.
- Service Tax: Work in progress for EPC projects
Engineering, procurement, commissioning projects should carefully assess the negative list regime for service tax and its impact on bottom lines.
- CCaSS: Strategic options for upstream companies
Although there has been a significant decrease in the oil intensity of Indian GDP between 1995 and 2008, a lot needs to be done to reduce the country’s high dependency on imported oil.
- Corporate Tax: Taxing times for development centers IT companies
The Indian Prime Minister has announced the setting-up of a committee to review the taxability of development centers, the IT sector, as well as expediting the process of notifying the safe-harbour provisions.
- Telecom: Irrational spectrum prices to pinch consumers
The Indian government's decision to price spectrum high is not in line with goals such as socioeconomic growth of the country, better coverage and inclusive growth.
- Infrastructure-Ports & Shipping: Addressing regulatory and development risks key to draw funding to port sector
There needs to be speedy development of non-major ports resulting in the addition of fresh capacity and increasing the share of minor ports from 29% in FY07 to 40% in FY12.
- People and Organisation: Collective vision gives strength to the firm
A vision provides shape and direction to the organization’s future and its values describe the underlying ethos of how the organization intends to operate, says this article.
- ITRA: Digital watchdog in the corporate milieu
When it is IT-based, fraud governance and internal audit can change from “detect and react” mode to “prevent and pro-act.”
- Tax Regulatory & Policy: Endless wait for FDI in multi-brand retail
Currently, foreign participation in the multi-brand retail format is not permitted, which is why one does not see the likes of a Harrods, Wal-Mart, or Tesco setting up their hypermarket in India.
- Personal Tax: Tax sops in the time of GST
Though states may retain the authority to offer incentives/benefits in non-tax related areas, their power may be significantly curtailed in taxation-related matters.
- Personal Tax: Tax implication of employee benefits: Things to remember
This article throws light on employee benefits such as Esops, ESPP and SAR and their tax benefits in India.
- Personal Tax: E-filing returns is not as complicated as it sounds
An individual having total taxable income exceeding Rs. 10 lakh is required to file returns online
- Corporate Tax: Tricky terrain of tax avoidance
While separating legitimate tax arrangements from tax avoidance, reasonableness is the key if investor and business community confidence is to be retained, says this article.
- Corporate Tax: GAAR goes only so far
The draft GAAR guidelines made public by the government fall short of providing the desired comfort and leave the important substantive tax aspects unaddressed, says this article.
- Fraud, Investigation & Dispute Services(FIDS): De-risk your corporate bank account from frauds
Any large-scale fraud involving siphoning of funds either by management or employees cannot be perpetrated without the misuse of the company’s bank accounts.
- Infrastructure: Regulation and hurdles
Removing regulatory hurdles is not always a case of passing a bill or modifying an Act. The need, is to speed up every aspect of the consultation process and resolve, gaps and differences at a faster pace.
- Fraud, Investigation & Dispute Services(FIDS): Good Samaritans with nothing to hide
NGOs are increasingly facing scrutiny on issues of transparency and accountability.
- Fraud, Investigation & Dispute Services(FIDS): Changing face of fraud in India
This article explores the top five fraud risks that emerged from the recent India Fraud survey, data or information theft and IP infringement, being the first.
- People and Organisation: Institution-building is nation-building
Leadership of an institution is not just a duty, but an obligation, explores our leader NS Rajan, in this article.
- Indirect Tax: Importer's challenge
India has granted significant duty concessions for imports from several ASEAN and South Asian countries. However, importers looking to reduce costs find the process of obtaining duty concessions too complex.
- Personal Tax: Tax-efficient investments for the salaried
For a salaried individual, the Income-Tax Act, 1961, provides various tax-saving investment tools where a taxpayer can park his income, which will not only reduce his tax liability, but also create wealth.
- Risk Management: Need for agility and control
Most managers believe their business is over-controlled and the complexity of the control environment slows their response to the changing competitive landscape.
- Corporate Tax: Corporate rejigs likely to attract stamp duty in TN
According to the proposed amendment the term “conveyance” will include every order of the High Court under section 394 of the Companies Act, 1956, involving inter vivos transfer of property, whether movable or immovable, or any interest in any property.
- Personal Tax: Preserving your PF during an overseas assignment
Over the last few years, the Indian Government has signed “social security agreements” with governments in other countries for the benefit of Indians working abroad and their Indian employers.
- Human Capital: Shakespeare's letter to a new-age CEO
This article by our leader N.S. Rajan explores the role of the new age CEO, amid challenging times.
- Infrastructure: Airlines should spread wings to non-metros to stay afloat
Airlines should look to operating in diverse markets and have the vision to develop new markets and deep pockets to support occasional stress, says this article.
- Infrastructure: New cities built around high-speed train corridors desirable
New cities need to take advantage of new transport infrastructure that is being planned, such as the high-speed rail, suggests this article.
- CCaSS: Is going green just a fad?
Today, news reports and corporate pronouncements on environmental stewardship abound. These are only a sample of the full breadth of activity underway. But is this just a fad? This article explores.
- Indirect Tax: Taxman's eye on cross-border services
The proposed PPS Rules is a peephole into the future, and expected to directly influence the manner in which cross-border supply of services would be interpreted for levy of service tax.
- Corporate Tax: 'Avoid' the confusion
The Finance Minister has cleared some of the haze surrounding GAAR. But more clarity is needed on how the rules will sift the grey area between tax evasion and tax planning.
- Corporate Tax: Mauritius structures - gazing through a crystal ball
Amidst confusing signals, tax professionals and taxpayers attempt to divine the future of Mauritius structures in India.
- Telecom: Need for balance between revenues and growth of telecom sector
The policy on spectrum auctions and pricing was much awaited to induce order in the Indian telecom sector. However, the proposed recommendations by the TRAI have quailed the hopes of the industry, according to this article.
- Personal Tax: Various investment options available to secure kid’s future & tax implications
High inflation, coupled with an increasingly competitive environment, has made creating a strong financial base for children a huge challenge for parents.
- Corporate Tax: Corporates can take a relook at their ‘acceptable’ tax planning
The finance minister’s decision to step back on retroactive taxing of indirect transfer of shares and defer the implementation of General Anti Avoidance Rules (GAAR) provisions has provided a breather to corporates.
- Personal Tax: Finance Bill 2012: New process of filing tax return to become more taxing
One should appreciate the intent and focused attention of Indian tax authorities to improve the tax filing experience, says our leader Amarpal S Chadha.
- Corporate Tax: GAAR deferred: Finance minister brings smiles back to frowning faces
The finance minister's announcement, especially in relation to the deferral of the introduction of General Anti-Avoidance Rules (GAAR), would have brought relief after the initial Budget presentation, says our leader Sudhir Kapadia.
- Corporate Tax: Taxation of share capital gains in source countries questionable
Corporate source earnings, conceptually, should attract the same amount of tax as those earned by individual shareholders from a business carried on directly.
- Fraud, Investigation & Dispute Services(FIDS): Sticky issues in oil exploration
The oil and gas exploration contracts run into problems owing to differences over cost projections.
- Indirect Tax: Pluses in the negative list
There is no doubt that taxation of services under the existing positive-list regime has made the law lengthy and litigious.
- Direct Tax: Will GAAR rob the sheen off India-Mauritius structures?
The uncertainty could potentially lead to a dangerous trend of the Revenue questioning almost every transaction that results in tax saving.
- Direct Tax: Pause before P-Notes
Uncertainties in tax positions could deter FIIs from issuing P-Notes, which could adversely impact foreign fund inflow to the Indian capital market.
- Direct Tax: The proposed GAAR arms taxmen with arbitrary powers
There are many troubling aspects of this provision that will make doing business in India more challenging, than what it already is from a tax perspective, says our leader Sudhir Kapadia in this article.
- Government & Public Sector: Missing links
Allocating limited public resources across an excessively broad range of sectors may lead to inefficient use of resources. Effective utilization of funds is critical, says this article.
- Technology: Impact on biz sentiment depends on scale of class action suit
NS Rajan, Partner and Global Leader - People and Organisation, says in an interview that increasing stringent state labour laws and their enforcement has led to a rise in litigations.
- Fraud, Investigation & Dispute Services(FIDS): Forensic approach to avoid shocks
An investor needs to evaluate potential compliance risk arising out of corrupt practices, says our Fraud Investigation and Dispute Services Partner Sandeep Baldava, in this article.
- Budget: Budget 2012: Strong measures will boost investment in real estate
Budget 2012 provides the Government of India an opportunity to address the problems plaguing the housing sector to ensure better quality homes at affordable prices.
- Budget: What Budget can do
This article presents Budget recommendations to widen the existing base of physical infrastructure, especially power, oil & gas, roads and ports
- Fraud Investigation & Dispute Services: Set the tone to manage fraud risks
Given the tedious penal provisions under the new Companies Bill, it is advisable that companies proactively implement a robust fraud risk management process.
- Direct Tax: Widening the tax base — the unfinished agenda
There is a dire need to broaden the tax base by bringing in the culture of compliance, says our leader R. Anand.
- Direct Tax: Intense Expectations: Pre-budget 2012
The industry is hoping for the government's support through a budget focused on a growth-oriented tax policy framework
- Direct Tax: Budget may "look through" offshore deals
The Government may consider bringing in certain key aspects of the DTC in the current Income-tax Act, 1961 by way of an amendment in the Finance Bill.
- Direct Tax: Why Vodafone ruling is historic
The Supreme Court has acknowledged that the use of holding companies and investment structures may not necessarily result in tax avoidance.
- Indirect Tax: Will the negative list pass muster?
The Union Budget 2012-13 is likely to witness a revolutionary shift in taxation of services in India with the introduction of the negative list of services, says Vivek Pachisia, Tax Partner.
- Personal Tax: How to choose between different tax-saving options
With so many tax-saving instruments available, and with the cap on the amount of investment allowed, one needs to plan well, says our senior tax professional, Shankar PB.
- Direct Tax: Reducing cross-border tax disputes
MNCs in India have to deal with complex issues, with fundamentals of international taxation being tested on a regular basis, says our Tax Partner Prashant Khatore.
- Direct Tax: Vodafone ruling will end uncertainty
The much awaited decision in the Vodafone case reaffirms the confidence of investors all across the globe in the Indian judiciary. Bringing a major relief to the foreign investors interested in participating in the India growth story, the judgment pronounced by Hon'ble Chief Justice of India S H Kapadia, Swatanter Kumar and K S Radhakrishnan clears the air surrounding the Indian regulatory environment which may enhance the foreign direct investment inflows into India.
- Direct Tax: Implication beyond borders
The Supreme Court in the Vodafone case seeks to strike a balance between legitimate tax minimization and abusive tax avoidance.
- Direct Tax: The tax triumph
The judgment of the Supreme Court of India on the Vodafone case will provide a much needed clarity, certainty and confidence to global investors, says Tax Partner, Pranav Sayta.
- Direct Tax: Post Vodafone verdict, Indian government should show maturity
With the Supreme Court ruling in favor of Vodafone, the government should gracefully acknowledge the verdict and clarify that no indirect exit transactions will be pursued any further, says our leader Sudhir Kapadia.
- Direct Tax: Weigh DTC provisions while choosing tax saving instruments
It is that time of the year when people make investments for tax saving. As an investor, when you think about investments, you have to keep in mind that the existing tax laws will undergo a major change by April 2012, with the implementation of the Direct Tax Code (DTC).
- Direct Tax: Taxing venture funds is bad for growth
Although the tax law provides for a single level of taxation, practically, the venture fund as well as the investor may be subject to tax on the same income, leading to double taxation.
- Personal Tax: How to use HUF to reduce your tax liability
The taxman treats the Hindu Undivided Family (HUF) as another entity, entitled to the same exemptions and deductions as any other individual taxpayer, says Tax Partner Sonu Iyer, in this article.
- IT Advisory: Companies turn employee risks such as attrition, employee costs into opportunities
Talent risks faced by an organization in India are presenting opportunities to launch robust talent management mechanisms that will not only help mitigate talent risks but will also help catapult the organization on to a higher growth trajectory.
- Tax Regulatory: Companies Bill to cushion ride for M&As - implementation holds the key
In the M&A space, the corporate world keenly looks forward to easy regulation. From that perspective, the recently-tabled Companies Bill, 2011, has been eagerly awaited.
- Personal Tax: Returning to India? Rules about earnings from investments abroad
Overseas investments by Indian residents are regulated by the Foreign Exchange Management Act (FEMA), which is implemented by the Reserve Bank of India.
- IndirectTax: Advance ruling under indirect tax
The Central Government should reconsider aligning the provisions relating to advance ruling under indirect tax laws with the scheme prevailing under income tax, says our Senior Tax professional, Saloni Roy.
- Personal Tax: Interest earned on infra bonds is taxable
Investment in infrastructure bonds would help the investor save tax depending on the rate at which he is liable to pay tax, says Shalini Jain in this article.
- Direct Tax: Floating a trust may help you earn goodwill & get tax benefits too
Not many are aware that one can set up his/her own trust for charitable activities such as medical aid to the poor or providing education to those who cannot afford it.
- IT Advisory: Stretch your IT investment rupee
In this column, IT Advisory Services Leader Samiron Ghoshal offers some pointers towards an IT investment approach that will enable better strategy execution.
- Tax & Policy: FDI in Retail - Regenerated enthusiasm amongst foreign investors
Given the current economic uncertainty prevailing in the global economy, India has become an attractive FDI destination, with its young population, higher disposal income and growing consumer demand.
- Personal Tax: Do social security pacts work for you?
One of the special provisions is that unlike a local employee, who is entitled to withdraw PF money two months after leaving employment, an international worker can withdraw PF money only after retirement or attaining 58 years of age.
- Personal Tax: Esops better than stock purchase plans
Esops generally score better than ESPPs, more so in case of increase in share prices, as Esop holders' cost would be pre-fixed at the time of grant (where the prices are lower).
- Indirect Tax: Service tax norms must be clearer
While the goals of the revised concept paper are positive, much will depend on how the list of negative services is compiled.
- Retail: FDI in retail - MNC retailers to select partners with suitable capabilities
India's retail market promises to be among the top retail destinations in the world, thanks to rising consumption.
- IT Advisory: ERM in the time of financial crisis
Enterprise Risk Management (ERM) can be an enabling framework with varied benefits for banks and other financial institutions in these complex and changing times.
- Real Estate: Mumbai needs infrastructure
Maximum City faces a colossal challenge in augmenting the carrying capacity to cater to high densities, say Ajit Krishnan and Tarika Kumar in this article.
- Aviation: Aviation sector - Open up aviation
There is hope for India's airlines as the sector here is still young, says Sushi Shyamal, Partner, Transaction Advisory Services at Ernst and Young India, in an interview.
- Telecom: Telecom sector - On the cusp of consolidation
The hyper-competitive telecom industry, reeling under the pressure of stressed margins, has been eagerly awaiting a policy around mergers and acquisitions, to initiate consolidation.
- Personal Tax: Tax implications are different for employees, consultants
All the eligible business expenses incurred in providing consultancy services are deductible from the consultancy income for tax purposes - even the value of depreciation of the business assets can be deducted.
- Banking and Finance: Bank NIMs will shrink
The RBI, on expected lines increased the policy rates in its second quarter review of the monetary policy. The persistently high near double digit inflation is forcing the predictable policy stance.
- Government & Public Sector: National Manufacturing Policy: Don't go wrong this time
With the Cabinet approving the National Manufacturing Policy recently, some chronic problems plaguing the Indian manufacturing sector are set to be resolved.
- Indirect tax: Negative list of services step in right direction
The release of the concept paper on taxation of services based on a "negative list" by the finance ministry, has struck quite a debate. Read more.
- Real Estate: Better transparency, clarity in realty norms will attract foreign funds
In this engaging interview, Howard Roth, Partner & Global Real Estate Leader, EY discusses the need for a critical shift in real estate polic