labels: confederation of indian industry, economy - general
CII wants fiscal support to help Indian companies investing globally news
06 February 2007

New Delhi: The Confederation of Indian industry (CII) has asked for the removal of fiscal hurdles as a measure of support for Indian companies making overseas investments in global markets.

In a statement, the apex industry body said, "The efforts of Indian companies in making investments overseas by setting up manufacturing and other facilities through joint ventures and subsidiaries needs to be supported by removal of fiscal hurdles."

It outlined budgetary measures and said repatriation of money in to the country should be encouraged through fiscal incentives to balance the high rate of outgoing investment from India.

CII emphasised that the dividends received by an Indian company from a foreign company, whether its subsidiary or joint venture, though received in foreign exchange, was fully taxable. It has suggested that dividends received from such entities in convertible foreign exchange should be in line with the dividend received from any domestic company.

The chamber also pointed out that where the government has entered into an agreement with foreign countries for granting tax relief, an option was available to the assesse to apply either the provision of domestic law or treaty law, whichever is more beneficial to him.



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CII wants fiscal support to help Indian companies investing globally