ER&I connect

Make in India – Some regulatory and tax aspects

Date: 13 July 2023

Subject matter speakers for the session:
• Goldie Dhama
• Sujit Parakh
• Punita Bhuchar

India as a manufacturing destination – Tax and regulatory considerations

India is the third most sought-after manufacturing destination in the world and has the potential to export goods worth US$ 1 trillion by 2030. The Indian Government launched “Make in India” initiative in Sep 2014 as part of a wider set of nation-building initiatives. This initiative has given an impetus to manufacturing in India, thus transforming India into a Global Manufacturing Hub. With focus on promoting domestic manufacturing, the Govt. has also taken initiative in creating market place for the products made in India, by notifying “Public Procurement (Preference to Make in India) Order, 2017”. In this regard, it is imperative to understand the key principles which have been the backbone of this “Make in India” initiative along with the process of public procurement in India, what are its principles, and how it impacts undertaking business in India.

India’s manufacturing exports for FY22 reached an unprecedented US$ 418 billion, an overall growth of more than 40% compared to the US$ 290 billion from the previous year. It is the initiatives like Production Linked Incentive (PLI) whereby incentive of around US$ 340 million has been disbursed in FY 2022-23, and various state specific incentives which have given the much-needed thrust to the manufacturing capabilities in India. While we would throw light on all these incentives in brief, we would discuss the incentives for two key sectors, i.e., Green Hydrogen and Semi-conductor in detail. We will also cover key aspects from corporate tax and indirect tax on supply chain structuring and State incentives manufacturing set-up in India.

Impact of angel tax, valuation, and tax rate doubling for royalty and fees for technical services

Date: 28 June 2023

Subject matter speakers for the session: Jimit Devani, Pinkesh Billimoria

In this webinar, we shall discuss the two key amendments:

• Increase in tax rates for royalty and fees for technical services:
The government doubled the tax rate for income in the nature of royalty and fees for technical services earned by a non-resident, from 10% to 20% under the Indian domestic law w.e.f 1 April 2023. While non-residents can claim beneficial tax rates under the respective treaties, there are certain documentation and compliances attached to these treaty benefits. With this webinar, we intend to cover scenarios affected by this increase and the way forward on the same.
• Recent exemptions and the proposed valuation methods for angel tax
Recently, the angel tax regime has been extended to non-residents investing in Indian resident companies w.e.f 1 April 2023. However, there have been discussions on its levy, as well as the valuation methods. As part of the ongoing discussions, the Indian government has released a list of exemptions and various methodologies of valuation methods for public comments. During the webinar, we intend to discuss the exemptions as well as proposed options for valuations.
 

Date: 28 February 2023

Subject matter experts: Arindam Guha, Rajesh Samson, Shripal Lakdawala

Agenda:
The Indian government, in 2021, announced a National Monetisation Pipeline of INR 6,00,000 lakh crore. Key sectors identified include airports, railways, roads, shipping, and gas pipeline, amongst others. We will discuss the key considerations of private players, viz., the ability to mobilise funds including listing, exit considerations in case of private equity, and challenges in case of public-private partnership projects. We will also cover key tax and regulatory considerations for structuring acquisitions as well as at the time of exit.

Engineering, procurement, and construction

Date: 24 January 2023

Agenda: Infrastructure players often enter into engineering, procurement, and construction (EPC) contracts to execute corresponding projects. However, the Indian tax law on the EPC contracts is still unsettled, with various open issues related to factors such as permanent establishment, association of persons, taxability of offshore supply, and goods and service tax. In our first edition, we will discuss key issues, guidelines, and takeaways from a tax and regulatory perspective for global and local players as they enter into several EPC contracts.

Time:
Option one: 2:00 p.m. to 3:00 p.m., India time
Option two: 7:30 p.m. to 8:30 p.m., India time

Subject matter experts: Anoop Kalavath, Gokul Chaudhri, Jimit Devani