1,000 foreign firms thinking to production in India

1,000 foreign firms thinking to production in India, 300 actively pursue plan as 'Exit China' mantra grows.

India as an alternate manufacturing hub and have taken up their proposals across various levels of the government.

- 1,000 foreign firms are planning to shift manufacturing to India.

- 300 actively pursuing production plans in mobiles,electronics,medical devices, textiles.

- Proposals are at various levels central government departments, Indian missions abroad, state industry departments Government is making all-out attempt to hard-sell India as a manufacturing hub.

- Cost difference between India and South East Asia is 10-12 per cent.

- For new manufacturers,the applicable tax was brought down to 17 per cent making it the lowest in South East Asia.

- Reduced tax rate and the roll-out of goods and services tax (GST), India attract foreign investment in the manufacturing sector.

- Japan has announced $2 billion financial aid for its companies to shift production out of China.

Now the world is rethinking its strategy of putting all eggs in one basket. A lot of interest is being shown by companies towards India.

India is generally considered an attractive destination because of its market size and also India being a possible hub for exports.

Private lender Yes Bank Ltd. returned to profitability

Private lender Yes Bank Ltd. returned to profitability.

Yes Bank Ltd. returned to profitability in the January-March quarter after the bank wrote-down additional tier-1 bonds as part of its planned reconstruction scheme,leading to a one-time gain.

Bank was placed under a moratorium by the Reserve Bank of India in March,due to this a new management and board was appointed as part of a rescue plan.

In the fourth quarter, Yes Bank reported a net profit Rs 2,628.6 crore.

AT-1 bonds amounting to Rs 8,415 crore were been fully written down permanently on March 14, 2020 and has been disclosed as an extraordinary item. Net of taxes, the extraordinary item stood at Rs 6,296 crore.

Net interest income rose 19.6 percent year-on-year to Rs 1,274 crore.

The bank continued to remain in breach of regulatory requrement. The bank’s core equity tier-1 or CET-1 ratio and Tier-1 ratio stood at 6.3 percent and 6.5 percent respectively.

The bank also breached the RBI’s statutory liquidity ratio and liquidity coverage ratio requirements, leading to a penalty of Rs 334 crore.

Yes Bank is now owned by a collective of India’s largest financial institutions and headed by a former State Bank of India executive.

Advantage offered by India to Foregin Companeis for Investment perspective

Advantage offered by India to Foregin Companeis for Investment perspective.

- More economical in terms of securing Land coampre to other Countries.

- Affordable skilled Labor comapre to other countries.

- Change in Labor Laws, which have proved a major stumbling back for Companies.

- Government is considering request from e commerce companies to postpone Tax on Digital Transactions (Which is Introduce in Budget 2020).

- India approved 130 billion rupee ($1.7billion) worth of Investments to make more Drugs and Medical Devices and boost local manufacturing of Drugs intermediates and active pharmaceutical ingredients to cut dependence on Import from China.

It's win win situation for both India and Companies Coming to India. India is offering and amending Laws for Investment of foregin companeis in India.
For foregin companeis, India is emerging markets it will be give a good return and boost the economy.

Rates for tax deduction at source

Rates for tax deduction at source  for Assessment year 2016-­17

Particulars TDS Rates(in %)

1. In the case of a person other than a company

1.1 where the person is resident in India­

Section 192: Payment of salary Normal Slab Rate

Section 192A: Payment of accumulated balance of provident fund which is taxable 10

in the hands of an employee (with effect from 01.06.2015).

Section 193: Interest on securities

a) any debentures or securities for money issued by or on behalf of any local 10

authority or a corporation established by a Central, State or Provincial Act;

b) any debentures issued by a company where such debentures are listed on a 10

recognised stock exchange in accordance with the Securities Contracts (Regulation)

Act, 1956 (42 of 1956) and any rules made thereunder;

c) any security of the Central or State Government; 10

d) interest on any other security 10

Section 194: Dividend other than the dividend as referred to in Section 115­O 10

Section 194A: Income by way of interest other than "Interest on securities" 10

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30

games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

Section 194C: Payment to contractor/sub­contractor

a) HUF/Individuals 1

b) Others 2

Section 194D: Insurance commission                                     10

 

Section 194DA: Payment in respect of life insurance policy 2

Section 194EE: Payment in respect of deposit under National Savings scheme 20

Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit 20

               Trust of India

Section 194G: Commission, etc., on sale of lottery tickets 10

Section 194H: Commission or brokerage 10

Section 194­I: Rent

a) Plant & Machinery                                  2

b) Land or building or furniture or fitting 10

Section 194­IA: Payment on transfer of certain immovable property other than 1

agricultural land

Section 194J: Any sum paid by way of 10

a) Fee for professional services,

b) Fee for technical services

c) Royalty,

d) Remuneration/fee/commission to a director or

e) For not carrying out any activity in relation to any business

f) For not sharing any know­how, patent, copyright etc.

Section 194LA: Payment of compensation on acquisition of certain immovable 10

property

Section 194LBA(1): Business trust shall deduct tax while distributing, any income 10

received or receivable by it from a SPV or any income received from renting or

leasing or letting out any real estate asset owned directly by it, to its unit holders.

Section 194LBB: Investment fund paying an income to a unit holder [other than 10

income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with

effect from 01.06.2015).

Any Other Income 10

1.2 where the person is not resident in India­

Section 192: Payment of Salary Normal Slab Rate

Section 192A: Payment of accumulated balance of provident fund which is taxable 10

in the hands of an employee (with effect from 01.06.2015).

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30

games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

 

Section 194E: Payment to non­resident sportsmen/sports association 20

Section 194EE: Payment in respect of deposits under National Savings Scheme 20

Section 194F:Payment on account of repurchase of unit by Mutual Fund or Unit 20

Trust of India

Section 194G: Commission, etc., on sale of lottery tickets 10

Section 194LB: Payment of interest on infrastructure debt fund 5

Section 194LBA(2): Business trust shall deduct tax while distributing any interest 5

income received or receivable by it from a SPV to its unit holders.

Section 194LBA(3): Business trust shall deduct tax while distributing any income 30

received from renting or leasing or letting out any real estate asset owned directly by

it to its unit holders.

Section 194LBB: Investment fund paying an income to a unit holder [other than 10

income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with

effect from 01.06.2015).

Section 194LC: Payment of interest by an Indian Company or a business trust in 5

respect of money borrowed in foreign currency under a loan agreement or by way of

issue of long­term bonds (including long­term infrastructure bond)

Section 194LD: Payment of interest on rupee denominated bond of an Indian 5

Company or Government securities to a Foreign Institutional Investor or a Qualified

Foreign Investor

Section 195: Payment of any other sum to a Non­resident

a) Income in respect of investment made by a Non­resident Indian Citizen 20

b) Income by way of long­term capital gains referred to in Section 115E in case of a 10

Non­resident Indian Citizen

c) Income by way of long­term capital gains referred to in sub­clause (iii) of clause 10

(c) of sub­Section (1) of Section 112

d) Income by way of short­term capital gains referred to in Section 111A 15

e) Any other income by way of long­term capital gains [not being long­term capital 20

gains referred to in clauses (33), (36) and (38) of Section 10]

f) Income by way of interest payable by Government or an Indian concern on 20

moneys borrowed or debt incurred by Government or the Indian concern in foreign

currency (not being income by way of interest referred to in Section 194LB or

Section 194LC)

g) Income by way of royalty payable by Government or an Indian concern in 10

pursuance of an agreement made by it with the Government or the Indian concern

where such royalty is in consideration for the transfer of all or any rights (including

the granting of a licence) in respect of copyright in any book on a subject referred to

in the first proviso to sub­section (1A) of Section 115A of the Income­tax Act, to the

Indian concern, or in respect of any computer software referred to in the second

 

proviso to sub­section (1A) of Section 115A of the Income­tax Act, to a person

resident in India

h) Income by way of royalty [not being royalty of the nature referred to point g) 10

above E] payable by Government or an Indian concern in pursuance of an agreement

made by it with the Government or the Indian concern and where such agreement is

with an Indian concern, the agreement is approved by the Central Government or

where it relates to a matter included in the industrial policy, for the time being in

force, of the Government of India, the agreement is in accordance with that policy

i) Income by way of fees for technical services payable by Government or an Indian 10

concern in pursuance of an agreement made by it with the Government or the Indian

concern and where such agreement is with an Indian concern, the agreement is

approved by the Central Government or where it relates to a matter included in the

industrial policy, for the time being in force, of the Government of India, the

agreement is in accordance with that policy

j) Any other income 30

Section 196B: Income from units (including long­term capital gain on transfer of 10

such units) to an offshore fund

Section 196C: Income from foreign currency bonds or GDR of an Indian company 10

(including long­term capital gain on transfer of such bonds or GDR)

Section 196D: Income of foreign Institutional Investors from securities (not being 20

dividend or capital gain arising from such securities)

2. In the case of a company­

2.1 where the company is a domestic company­

Section 193: Interest on securities

a) any debentures or securities for money issued by or on behalf of any local 10

authority or a corporation established by a Central, State or Provincial Act;

b) any debentures issued by a company where such debentures are listed on a 10

recognised stock exchange in accordance with the Securities Contracts (Regulation)

Act, 1956 (42 of 1956) and any rules made thereunder;

c) any security of the Central or State Government; 10

d) interest on any other security 10

Section 194: Dividend 10

Section 194A: Income by way of interest other than "Interest on securities" 10

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30

games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

Section 194C: Payment to contractor/sub­contractor

a) HUF/Individuals

1

b) Others 2

Section 194D: Insurance commission 10

Section 194DA: Payment in respect of life insurance policy 2

Section 194EE: Payment in respect of deposit under National Savings scheme 20

Section 194F: Payment on account of repurchase of unit by Mutual Fund or Unit 20

Trust of India

Section 194G: Commission, etc., on sale of lottery tickets 10

Section 194H: Commission or brokerage 10

Section 194­I: Rent

a) Plant & Machinery 2

b) Land or building or furniture or fitting 10

Section 194­IA:Payment on transfer of certain immovable property other than 1

agricultural land

Section 194J: Any sum paid by way of 10

a) Fee for professional services,

b) Fee for technical services

c) Royalty,

d) Remuneration/fee/commission to a director or

e) For not carrying out any activity in relation to any business

f) For not sharing any know­how, patent, copyright etc.

Section 194LA:Payment of Compensation on acquisition of certain immovable 10

property

Section 194LBA(1): Business trust shall deduct tax while distributing, any income 10

received or receivable by it from a SPV or any income received from renting or

leasing or letting out any real estate asset owned directly by it, to its unit holders.

Section 194LBB: Investment fund paying an income to a unit holder [other than 10

income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with

effect from 01.06.2015).

Any Other Income 10

2.2 where the company is not a domestic company­

Section 194B: Income by way of winnings from lotteries, crossword puzzles, card 30

games and other games of any sort

Section 194BB: Income by way of winnings from horse races 30

Section 194E: Payment to non­resident sports association 20

Section 194G: Commission, etc., on sale of lottery tickets 10

Section 194LB: Payment of interest on infrastructure debt fund 5

Section 194LBA(2): Business trust shall deduct tax while distributing any interest 5

income received or receivable by it from a SPV to its unit holders.

Section 194LBA(3): Business trust shall deduct tax while distributing any income 40

received from renting or leasing or letting out any real estate asset owned directly by

it to its unit holders.

Section 194LBB: Investment fund paying an income to a unit holder [other than 10

income which is exempt under Section 10(23FBB)] shall deduct tax therefrom (with

effect from 01.06.2015).

Section 194LC: Payment of interest by an Indian Company or a business trust in 5

respect of money borrowed in foreign currency under a loan agreement or by way of

issue of long­term bonds (including long­term infrastructure bond)

Section 194LD:Payment of interest on rupee denominated bond of an Indian 5

Company or Government securities to a Foreign Institutional Investor or a Qualified

Foreign Investor

Section 195: Payment of any other sum

a) Income by way of long­term capital gains referred to in sub­clause (iii) of clause 10

(c) of sub­section (1) of Section 112

b) Income by way of short­term capital gains referred to in Section 111A 15

c) Any other income by way of long­term capital gains [not being long­term capital 20

gains referred to in clauses (33), (36) and (38) of Section 10]

d) Income by way of interest payable by Government or an Indian concern on 20

moneys borrowed or debt incurred by Government or the Indian concern in foreign

currency (not being income by way of interest referred to in Section 194LB or

Section 194LC)

e) Income by way of royalty payable by Government or an Indian concern in 10

pursuance of an agreement made by it with the Government or the Indian concern

after the 31st day of March, 1976 where such royalty is in consideration for the

transfer of all or any rights (including the granting of a licence) in respect of

copyright in any book on a subject referred to in the first proviso to sub­section (1A)

of Section 115A of the Income­tax Act, to the Indian concern, or in respect of any

computer software referred to in the second proviso to sub­section (1A) of Section

115A of the Income­tax Act, to a person resident in India

f) Income by way of royalty [not being royalty of the nature referred to in point e)

above C] payable by Government or an Indian concern in pursuance of an agreement

made by it with the Government or the Indian concern and where such agreement is

with an Indian concern, the agreement is approved by the Central Government or

where it relates to a matter included in the industrial policy, for the time being in

force, of the Government of India, the agreement is in accordance with that policy—

A. where the agreement is made after the 31st day of March, 1961 but before the 1st 50

day of April, 1976

B. where the agreement is made after the 31st day of March, 1976 10

g) Income by way of fees for technical services payable by Government or an Indian

concern in pursuance of an agreement made by it with the Government or the Indian

concern and where such agreement is with an Indian concern, the agreement is

approved by the Central Government or where it relates to a matter included in the

industrial policy, for the time being in force, of the Government of India, the

agreement is in accordance with that policy—

A. where the agreement is made after the 29th day of February, 1964 but before the 50

1st day of April, 1976

B. where the agreement is made after the 31st day of March, 1976               10

h) Any other income 40

Section 196B: Income from units (including long­term capital gain on transfer of 10

such units) to an offshore fund

Section 196C: Income from foreign currency bonds or GDR of an Indian company 10

(including long­term capital gain on transfer of such bonds or GDR)

Section 196D: Income of foreign Institutional Investors from securities (not being 20

dividend or capital gain arising from such securities)