India Welcomes
______________________________________________________________________________

Atithi Devo Bhava
(Guests are our God)

• On behalf of the All India Federation of Tax Practitioners, we have great pleasure in cordially inviting you to visit India for “AOTCA Mumbai Meeting 2009 – International Tax Conference” on the theme 'India Vision 2020' at Mumbai, which is commercial capital of India. The conference will be held at Trident, Nariman Point, Mumbai on 19th, 20th & 21st November, 2009.

• India represents the biggest democracy in the world. The Constitution of India is the supreme law of the land. One of the most important provisions of the Constitution of India is Article 265, which provides that “no tax shall be levied or collected except by authority of law”.

• Since 1991, India has concentrated on development, liberalization process of law and procedure for doing business in India, Scrapping of Foreign Exchange Regulation Act, introduction of Foreign Exchange Management Act, Information Technology Act, Right to Information Act, Money Laundering Act, Value Added Tax (VAT), Uniform Stamp Act are steps in the right direction to attract foreign investment. Dividend income is completely exempt.

• Capital gains in respect of quoted shares of company which are held for more than one year are also exempt from income Tax. Corporate Taxation rate is only 35% which is considered as one of the lowest in the developing countries. Political stability has added advantages for doing business in India. Whichever the Government comes in to power, the liberalization process and foreign policy remain unaffected. India is the only country which has set up “National Knowledge Commission”. We have multi cultural, multi language multi religious background which is truly secular, as India is fast embracing the global economy.

• The Government of India, Ministry of Commerce and Industry Department policy & promotion has been continuously reviewing the various measures announced for liberalization of the policy and simplicity procedure for the policy on Foreign Direct Investment.

• India has one of the finest judicial systems. India has very matured tax system and tax administration. The cost of tax collection in India is only 0.67%, which can be considered as one of the lowest in the world. Non Residents can approach the Authority for Advance Rulings for Direct Taxes, as well as Indirect Taxes for determination by the Authority in relation to a transaction which has been undertaken or a proposed to be undertaken by a non resident applicant or a determination by the Authority in relation to a transaction which has been undertaken or proposed to be undertaken by a resident applicant with a non resident. The Authority for Advance Ruling which is headed by the retired judge of Supreme Court of India.

• As per law this Authority shall pronounce its Advance Ruling in writing within six months of the receipt of application. India has signed Double Taxation Avoidance Agreements with 80 countries. As per the provision of Income-tax Act, when there is conflict between Income-tax Act and Double Taxation agreements, the assessee can follow the law, which is beneficial to them. For regulating the Stock Market, we have Securities and Exchanges Board of India (SEBI). The Government is encouraging to pursue the Arbitration proceedings in most of the commercial dealings. India we have the Arbitration and Conciliation, Act 1996 which was enacted with a view to consolidate and amend the law relating to domestic arbitration, international commercial arbitration and enforcement of foreign arbitral awards as also to define the law relating to conciliation and for matters connected therewith or incidental thereto. Many non profitable organizations are providing the facilities of arbitration and reconciliation proceedings; many private banks are also encouraging for arbitration proceedings in respect of their dealings with the customers.

• Under the leadership of Hon’ble Prime Minister of India, Dr. Manmohan Singh, all states are concentrating only on development. India is able to achieve an economic growth rate of about 8.9%. Hindi is national language. However, people use English extensively in commercial establishments and Government Offices. Doing business in India is governed by various laws, rules, and regulations of the Union Government as well as respective State Governments. There are 29 States and 6 Union Territories. Apart from Central law, Government Policies and State legislation will also required to be considered while doing business in India.

• The Government of India has given an “Industry Status” to Entertainment Industry. Entertainment Industry comprises of Films, Television, Broadcasting, Cable Television, Television Software, Music, Radio, Live Entertainment and Event Management. After the grant of industry status by the Government, the film financing is made by several financial institutions. Thus there is now a great potential for Joint Venture with Indian Entertainment Industry.

• The Insurance sector has provided a greater opportunity for several global players. India is the second largest producer of fruits and vegetables. Thus there are great opportunities in this sector for private sectors players. The Tourism and Hospitality industry in India is one of the world’s fastest growing industries in the world. As the Indian hospitality industry is growing, there is great potential for investment in this industry as well. The Drugs and Pharmaceutical industry in India has attained international recognition as a technologically strong, having low cost of production, low R & D costs, innovative scientific manpower and strength of good National Research Laboratories.

• The global market for packaging has the potential for growth. After the opening up of the economy, organized retail formats are coming to India. The demand for steel, cement and all other allied industries, get a boost while the construction business gives a three-in-one solution of employment generation, economic development and human development through investments in housing. The Export Import policy over the year has aimed to help strengthen the export production base, by providing incentive to develop Special Economic Zones, procedural simplifications, besides focusing on quality and technological upgradation.

• India’s Information Technology (IT) industry is witnessing a healthy growth. In recent years, the banking sector has been undergoing rapid changes, reflecting a number of underlying developments. The most significant changes have been the advances in Communication and Information technology, which has accelerated and broadened the dissemination of financial information.

• India is recognized as emerging leader in the legal process outsourcing industry. This is mainly because of talented English speaking Lawyers, Chartered Accountants, computer education, development of Technology and our legal system which follows the British Tradition. The Apex Court, High Courts, quasi-judicial Authorities, the Tribunals, Tax administration, the proceedings are conducted and orders are passed in English. The legal opinions and the Arbitration proceedings are in English language.

• India’s banking system is better regulated and transparent. With Indian industry straining to establish a global foot print, mega acquisition deals overseas by local companies by mergers and acquisitions are making India as an Asian financial hub.

• We are sure your visit to India will make a memorable one and we will make a very sincere and honest attempt to look after you, when you visit our country.

Yours Sincerely,

For All India Federation of Tax Practitioners