Proposed JV With Welly Investments_7 Dec 09

8/14/2019 Proposed JV With Welly Investments_7 Dec 09

1/12

December 2009

JV with Welly InvestmentsProposed Indian Operations Overview of Indian Tax and Regulatory Framework


2/12

Slide 2NMADecember 2009

Our Understanding

Overview of Indian taxes

- Direct Tax

- Indirect Tax

Why NMA

Our Team

Overview


3/12


Our Understanding


4/12


India Company (Mr. Mehra and Mr. Rama being shareholders) to initially

set up factory in Pollachi for manufacturing coir fibre balesand trade

them entirely in the international market

Indian Company to subsequently enter into a JV with Welly Investment

Ltd, Hongkong (Welly)

Welly to take approx 70% stake:

- Total investment to be around $350,000

- Welly to invest $250,000 and balance $100,000 to be contributed by

the Indian promoters

Our Understanding


5/12


Overview of Indian taxes


6/12


Income tax a central law in India

Uniform tax year for all tax payers (Tax year April 1 ~ March 31)

Detailed transfer pricing regulations

Advance Rulings permissible in case of non-residents

Carry forward of tax loss for 8 years; tax depreciation for indefinite period

Aggressive interpretation of Permanent Establishment (PE) by Indian tax

authorities

Direct Tax Birds eye view


7/12Slide 7NMA

December 2009

Tax on import of goods

Peak rate of customs duty -10%

Effective rate of customs duty 24.42%

No Transaction tax on import of goods Service Tax (10.3%) - tax on provision/acquisition

of specified services

CENVAT (8.24%) - tax on manufacture of goods

Central Sales Tax (2%) tax on inter-State sale ofgoods

State Value Added Tax (4% to 12.5%) - tax onintra-State sale of goods

Entry Tax - tax on entry of goods into a State

Other local levies

Customs Duty Transaction Taxes

Indirect Tax Birds eye view

India moving towards unified GST

regime by April 2010


8/12Slide 8NMA

December 2009

Review of the Master Circular 2009 issued by RBI to check the approval

route for investing in the JV

To check whether the proposed industry falls under the Small ScaleIndustry (SSI) status

Review the Press Note 1, 2005 Series to check whether the proposedinvestor holds any other JV stake in India

Investment Strategy


9/12Slide 9NMA

December 2009

NMA is a boutique charteredaccountancy firm engaged in

providing auditing tax and accountingservices to large corporations

NMA is a leading firm providing

Audit services;

Accounting support;

Taxation & business advisory.

NMA has been in the practice foraround 7 years and currently hasoffices in Delhi, Kolkatta and Chennaiwith a mix of chartered accountants,company secretaries and lawyers

We constantly aim to provide high-quality and efficient services to ourclients at the optimum economicvalue

New Delhi

Chennai

About RSMWhy NMA

Kolkatta


10/12Slide 10NMA

December 2009

TransactionSupport

Services

Transfer PricingServices

Tax &BusinessAdvisory

Our Range of Services . . .

IndirectTaxServices

Attest & Risk

ConsultingServices

Our Range of Services


11/12

Assistance in initial set-up and incorporation of the Indian Company (including assistance inopening Indian bank account)

Assistance in incorporation of the JV and the investment route

Structuring of transactions from a tax optimal perspective

Assistance in setting-up of the production facility

Assistance in initial registrations such as:

Permanent Account No (PAN), Tax Account No (TAN),Directors Identification No(DIN),

Import-Export Code (IEC), Excise registration, Service tax registration and VAT/CST

registrations

Assurance and audit related functions

Assistance in formulating finance and operational policies and procedures

Outsourcing of routine finance, accounting and regulatory/tax functions (wherever required)

What NMA can offer..


12/12

Thank you

Proposed JV With Welly Investments_7 Dec 09

Documents

Transcript of Proposed JV With Welly Investments_7 Dec 09