by Rahul Chimanbhai Mehta Rrg at November 16, 2014 at 02:38PM

How SoMoKe's FDI proposals give a higher level to foreign companies and put Indian companies at a lower level. . SoMoKe = Sonia, Modi, AK , as far as FDI goes, all three are one and the same . Say an Indian company exports and earns $ 1 billion . Say it pays 40% tax and now has $600 million of its own forex earnings. Say that Indian company decides to bring in that $600 million into India and invest into India. OR say, some Indians company owners got forex investments from their relatives in gulf as gift or whatever. . Then that Indian company , as per law-drafts made by SoMoKe, DOES NOT have option to label its investment as FDI and cannot get benefits of FDI !!. . But if a foreign company brings $600 million , the SoMoKe insist on giving several benefits to that foreign company. . The benefits are . 1. The Indian company does NOT have option of repatriation of its profits in dollars even if the company was raised by its export earnings or gifts from relatives in foreign countries. . 2. Under various headings, not directly, SoMoKe offer income tax and capital gains tax exemption to foreign company but not Indian companies, even though they too brough forex just like the foreig company. eg SoMoKe support Mauritius treaty, Singapore treaty which make short term capital gain exempt from taxes. And there are ways to convert operating profits into short term capital gains. Plus central govt often makes many special deals which give tax exempt status to foreign company. . All in all, FDI isnt to get capital or forex. If so, why not offer same deals to INDIANS who bring forex thru gifts or exports or other legal means? SoMoKe's FDI implementation law-drafts show that their design is to ensure that foreigners take over a huge chunk of Indian economy. . Solution I propose to activists is to demand law-drafts that would create a level field between Indian companies and foreign companies. They are :- . 1. Taxing all companies at same rate, Ending Mauritius treaty as well as Singapore treaty . 2. No repatriation of profits in dollars or gold or silver or metals or natural resources. Repatriation of profits only by export earnings . 3. Applying same tax rate on SEZ companies. . And we should also inform voters that SoMoKe are opposing law-drafts that would decrease inefficiencies of Indian factory owners, such as JurySys, RTR, wealth tax, TCP, DDMRCAM , labor or his agent should spend time and bear hassles in depositing PF , TDS etc and not the company owner etc etc. .

by Rahul Chimanbhai Mehta Rrg



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