Panel Discussion Birchtree, Pfizer, Tommy Hilfiger and The Children’s Place

By |2013-10-11T08:27:36-04:00October 11th, 2013|Categories: Uncategorized|

Panel Discussion Birchtree, Pfizer, Tommy Hilfiger and The Children's Place

Terrific program organized by Bucknell University on global business. All CEO’s on the panel agreed Bucknell students made the best interns and employees. Commentary included challenges in moving money back into the United States from overseas operations, thus structure of a new startup should be carefully thought through. It was mentioned that in the retail industry there is a trend towards sourcing products from online orders through local stores, the advantages included being able to keep product flowing from inventory, better connectivity with clients, faster deliveries in some cases. Global copyright violations were an issues for all firms particularly for Pfizer. All companies treated this issue as very important to the brand image and brand name. Birchtree, Pfizer, and Tommy Hilfiger pursued violations aggressively. Companies were expanding into operations in the Middle East, China, Panama, Germany, and Latin America.

Met a “soon to be famous” up and coming, fashion mogul, Johnny Picardo. who is working at Victor Alfaro designing exquisite action clothing. Exceptionally interesting person and loved the clothes, particularly the workout clothes.

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New Webinar: Selling to Global Human Resources Leaders-Research and Recommendations

By |2013-10-02T11:05:58-04:00October 2nd, 2013|Categories: Uncategorized|Tags: , , |

 

Birchtree Global has completed an extensive research project on selling to human resources leaders.  Over 5,000 pages of data, interviews, surveys, and research papers were analyzed to create a comprehensive profile of the information, services, and support HR leaders need from sales professionals.  This program supports both HR leaders and sales professionals in their educational development by examining the relationship between these two functions.  Participants in this program will learn:

            a. The HR leadership decision making dynamic in the C-Suite

            b. Technical and strategic value sales professionals deliver to HR leaders

            c. The criticality of financial measures and metrics for both HR leaders and sales

            c. Advantages of integrating HR and sales as one global sales team

            d. How training programs using this research improve sales and increase RFP closing  percentages using a case study

At the conclusion of the program participants will understand:

            a. Why sales professionals don’t want to talk to HR

            b. Why HR leaders don’t want to talk to sales people

            c. CEOs and CFOs requirements to approve enterprise-wide HR programs

            d. Advantages of a strategic partnerships between HR and sales

This program is recommended for sales professionals selling to human resources leaders as well as human resources leaders.

Program details:

Date:               October 15, 2013

Time:               12:00-1:30 PM EDT

Format:            Live Webinar

Cost:                $50 (PayPal and all credit cards accepted)

To Register:     Email information@birchtreeglobal.com for registration information

Accreditation:       1.5 GPHR/SPHR Credits

 

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Meeting with Japan’s Prime Minister Shinzo Abe

By |2013-09-26T10:59:46-04:00September 26th, 2013|Categories: Uncategorized|

Meeting with Japan's Prime Minister Shinzo Abe

Wednesday, September 25, a group of about 100 economists and traders were invited to meet with the prime minister of Japan Shinzo Abe to hear an important speech on “Abenomics” at the N.Y. Stock Exchange. The Prime Minister provided a broad based overview of his financial objectives for the next several years then took questions from the guests. He followed his remarks with a tour of the stock exchange floor by New York Stock Exchange CEO Duncan Niederauer. Niederauer spent 3 years working in Japan 20 years ago. The Prime Minister then climbed the stairs to the balcony above the trading floor and rang the closing bell.

Prime Minister Abe’s remarks were wide ranging with multiple American cultural analogies including Muriel Siebert (the first woman to hold a seat on the exchange), Antonio Rivera (home run king), hot dog vendors, and controversially, Gordon Gecko (“Greed is good!”).

Prime Minister Abe’s comments on women were very interesting. He quoted Ms. Siebert (referencing the Middle-East) as having stated no country can compete fully without using all their human resources. This is in reference to the cultural practice in Japan of women dropping out of the workforce to have children and not returning. Japanese women have told me this is something they must do in order to prepare their children to get into good colleagues and universities. There are limited, good, day care options for professional women. Getting into a good colleague in Japan is dependent on getting into a good primary school. Under “Abenomics” Japan is focusing on developing day care centers to free up women to participate more fully in the economy.

Most importantly “Abenomics” is focused on eliminating the barriers to foreign direct investment through reducing or eliminating financial and safety compliance requirements (focusing on self reporting and safety certification). Much as France and Ireland have recently begun aggressively courting foreign direct investment, Prime Minister Abe is focused on removing barriers to trade. Japan’s on the right trend, with the last two economic quarters positive.

His reference to Gordon Gecko, the corporate raider in “Money Never Sleeps” with Michael Douglas was not completely effective. “Today, I have come to tell you that Japan will once again be a country where there is money to be made, and that just as Gordon Gekko made a comeback in the financial world … so too can we now say that ‘Japan is Back’,” Prime Minister Abe said. This remark caused some commentary in the press this morning but I think Prime Minister Abe was trying to say after the recent economic slump Japan, the world’s third largest economy, is focused on welcoming companies particularly technology companies and green energy. The country is rehabilitating the financial infrastructure to facilitate foreign direct investment.

Thanks to Dr. Dale Akinla for facilitating the meeting!

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Cuba Trip Itinerary

By |2013-09-17T16:28:40-04:00September 17th, 2013|Categories: Uncategorized|

Rotary International 2014

Itinerary

Departure Dates: February 23 – March 1, 2014 (7 days/6 Nights)

Day 1 – Havana

  • Arrive at the José Martí International Airport
  • After clearing immigrations and customs, your Cuban host will accompany you to your hotel in the heart of the country’s capital.
  • Get acquainted with your Cuban Guide and your Insight Cuba Tour Leader your with an afternoon program orientation.
  • Later that evening, celebrate your arrival with a fantastic welcome dinner at the hotel.
  • After dinner, depart to the Morro-Cabaña with a tour through the installations, and view the historical canon blast ceremony.

       Meals | Lunch*, Dinner        *For early arrivals

Day 2 – Havana

  • Breakfast at the hotel
  • This morning Insight Cuba will lead an educational exchange between the U.S. travelers and Cuban patients, residents and doctors at the local polyclinic, concerning, among other topics, socialized medicine and healthcare in both the U.S. and Cuba
  • Meet with Cuban farmers and administrators at Vivero Organopónico to discuss organic farming and its role in providing food in urban areas and the availability of organic farming supplies in both the U.S. and Cuba.
  • Lunch at Vivero Organopónico
  • Explore Finca Vigia, the birthplace of many of Ernest Hemingway’s best works, including For Whom the Bell Tolls and The Old Man and the Sea.
  • Meet with the director of the Casa Taller Antonia Eiriz and discuss the incredible works of Paper Mache.   Explore other expressions of Fine Arts from various artists and receive insight into the pieces made by members of the workshops taking classes at the institution.
  • Dinner in Havana

       Meals | Breakfast, Lunch, Dinner

Day 3 – Havana/Santiago

  • Breakfast at the hotel
  •  After breakfast we will meet with the Director of Havana Club. Havana Club rum is made in Santa Cruz del Norte, Cuba. The world famous brand was established by José Arechabala in 1878
    • Next we’ll visit with friends from the University’s FLEX program (the Foreign Language department), where we’ll have a chance to talk candidly about life in Havana.
    • Next, sit down with the director of the Literacy Museum in Havana to hear about Cuba’s literacy campaign and how the island’s youth have mobilized across the country to teach rural inhabitants how to read.
    • Enjoy an educational exchange with Cuban dance students at ProDanza Ballet School. You will have a chance to watch a stunning ballet performance. Afterwards meet and speak with the famed owner and director of the Laura Alonzo
      • Finally, it’s onward via domestic flight to Santiago de Cuba.
      • Dinner in Santiago.

        Meals | Breakfast, Lunch, Dinner

Day 4 – Santiago

  • Breakfast at the hotel
  • En route to Santiago de Cuba, stop at the village of Cobre to view the Basilica of Our Lady of Charity of Cobre beautifully tucked away in the hills. The Basilica is one of the most important churches of Cuba. Hike up the hills to view the Cimarron memorial (sculpture by Alberto Lescay, 1997, the first monument erected in the slave route established by UNESCO).
  • After arriving in Santiago de Cuba, enjoy lunch at El Morro fortress overlooking the sparkling blue Caribbean Sea.
  • Enjoy a panoramic tour of Santiago de Cuba, including Revolution Square, Cuartel Moncada, and Loma San Juan from the back of a bici-taxi!
    • Next, visit the Museo de Carnival to discuss the history of the slave trade, and how African roots have permeated the local culture.
    • Dinner in Santiago.

       Meals | Breakfast, Lunch, Dinner                                        

Day 5 – Santiago/Havana

  • Breakfast at the hotel
  • Kick off the day with a discussion on the Afrocubanismo movement during a visit to a local artist’s studio.
  • Get acquainted with Santiago de Cuba on a delightful walking tour en route to visit a Casa Particular to explore the details of this fascinating cottage industry with the owners.  Learn about the challenges they face and the successes they enjoy, buy being on the frontline of private industry in Cuba.
  • Visit the Casa Artex where we will enjoy an Afro-Cuban dance performance, before returning to Havana by domestic flight.
  • Dinner in Havana.

       Meals | Breakfast, Lunch, Dinner

Day 6 – Havana

  • Breakfast at the hotel
  •  Meet with ICAP representatives. ICAP promotes friendship and peace between Cubans and other parts of the world.
    • Later, get a snapshot into the lives and work of a local hair salon. We will meet with the owner of the business and learn about the unique challenges they face.
    • After lunch, move onto the next artistic adventure at La Zorra y El Cuevo, Havana’s famous jazz club, where you’ll meet jazz musicians for a sampling of sounds and rhythm. 
    •  Engage in non-guided dialogue with English speaking Cuban university students from the Cuban Amigos, sharing vivid details about life in Cuba.
    • Dinner in Havana.
    • After dinner we will head off to a famous night club for a fantastic show!

       Meals | Breakfast, Lunch, Dinner

Day 7 – Havana

  •  Breakfast at the hotel
  • Sit down with a manager of a prominent Cuban hotel and discuss the unique nuances of the Cuban hospitality industry.
  • Next, we will enjoy a talk about Cuban Economics with a specialist in the field.
    • Enjoy a visit to a local cigar factory where Cuba’s world famous cigars are produced.        
    • After our visit, bid farewell to Cuba as you board your flight home.

Meals | Breakfast, Lunch

 

*We will make every effort to operate all programs as disclosed in this agreement. However, circumstances beyond our control may arise which would require an adjustment to the program. We will do all that is possible to avoid such changes but we must reserve the right to make such modifications. Normal cancellation penalties still apply to the program that has been change.

Pricing to Include hotel Nacional or similar

  • Base Price for Double Occupancy:   $ 3,299
  • Single Supplement Add-on:   $ 500
  • First-class accommodations
  • Full schedule of guided people-to-people activities
  • All meals while in Cuba as agreed upon in final itinerary
  • U.S. Treasury Department License and Letter of Authorization
  • Insight Cuba Tour Leader
  • Cuban Guide
  • Small group size of no more than 24 guests
  • All entrance fees to scheduled activities and events
  • All in-country ground transportation, and airport transfers
  • Guaranteed flights from Miami to Cuba and priority handling (flight cost is additional)
  • Travel health insurance, emergency medical evacuation, and trip cancellation coverage (up to $1,000)
  • Insight Cuba Travel Guidebook
  • 24 hour emergency customer service hotline

Included in Tour Price:

 

 

not included in Tour Price:

  • Estimated Flight and Visa Fees not included
    • US domestic flights and International Flights are not included in the cost of the program (prices vary month to month). Flights to and from Cuba will be arranged by an authorized Charter Company via Insight Cuba. Payments for Flight Fees will be made payable to Insight Cuba. (Current flight price range including cost of Cuban Visa is $450 to $600)
  • Cuban Exit Fee not included
    • $25 Cuban Convertible Peso Exit Fee to be paid upon departure of Cuba (at the airport in Cuba)
  • Tips are not included
    • Tips for your guide, driver, chambermaids, bell hops and waiters are not included in the program fee. It is important that the group leader collect these funds from the group and pays the tip directly in Cuba or tell the participants that tips are not included and that they should be prepared to pay for this in Cuba.
  • Alcoholic Beverages and Bottled water are not included
    • Meals include 1 beverage. Bottled water can be requested at meals and additional bottles of water can be purchased on a daily basis. Alcoholic consumption is on your own account.

TO REGISTER FOR THIS TRIP

To register, please go to the website:

https://booknow.insightcuba.com/icgroupenroll/joingroup.aspx  

Type in the following and you will be taken to our club webpage with the registration information.

Username:  RotaryClub

Password: BARC223

We look forward to the pleasure of your company on this extraordinary adventure.

If you have additional questions, please call or email Janet Walsh: 

Phone:  914 218 3149

Email:    jlwalsh25@aol.com.

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Business Training to Increase Organizational Productivity

By |2013-09-16T15:25:59-04:00September 16th, 2013|Categories: Uncategorized|

September 16, 2013

Birchtree Global, LLC recommends CEOs consider promoting Coursera online university courses to their employees.  The courses are taught by distinguished faculty members, they are foundational to understanding business operations, they increase top line capability in businesses by bringing in new skills, and they reduce costs because the programs are free.

The following programs start soon.  Additional information can be found on Coursera.org:

Janet L. Walsh

 

Johns Hopkins

Computing for Data Analysis

Roger Peng

This course is about learning the fundamental computing skills necessary for effective data analysis. You will learn to program in R and to use R for reading data, writing functions, making informative graphs, and applying modern statistical methods.

Sep 23- 4 weeks

 

University of Washington

Mathematical Methods for Quantitative Finance

Dr. Kjell Konis

Mathematical Methods for Quantitative Finance covers topics from calculus and linear algebra that are fundamental for the study of mathematical finance. Students successfully completing this course will be mathematically well prepared to study quantitative finance at the graduate level. 

Sep 25-8 weeks

 

The Chinese University of Hong Kong

The Role of the Renminbi in the International Monetary System

Prof. Joseph Yam and Prof. Terence Tai-Leung Chong

This course will discuss various aspects of the Renminbi internationalization, including the reform of the international monetary system, the opportunities and challenges to internationalize the Renminbi, the evolution of China’s monetary and exchange rate policies, and the implications of the Renminbi internationalization for Hong Kong.

Sep 30-4 weeks.

 

Wharton

An Introduction to Operations Management

Christian Terwiesch

This course will teach you how to analyze and improve business processes, be it in services or in manufacturing. You will learn how to improve productivity, how to provide more choice to customers, how to reduce response times, and how to improve quality.

Sep 30-8 weeks

 

University of Maryland

Surviving Disruptive Technologies

Hank C. Lucas, Jr.

The purpose of this course is to help participants and the organizations they encounter survive the waves of technological disruptions facing business, government, education and their daily lives. 

Sep 30-7 weeks

 

University of California-Irvine

Foundations of Virtual Instruction

Cindy Carbajal

Learn what it takes to teach a K-12 course online! Investigate the history of virtual education, explore innovative tools, and examine key issues related to K-12 virtual instruction.  

Sep 30-5 weeks

 

Columbia University

Financial Engineering and Risk Management Part I

Martin Haugh and Garud Iyengar

This course provides an introduction to various classes of derivative securities and we will learn how to price them using “risk-neutral pricing”. In the follow-up to this course (FE & RM Part II) we will consider portfolio optimization, risk management and more advanced examples of derivatives pricing including, for example, real options and energy derivatives.

Oct-7 weeks

 


Wharton

An Introduction to Marketing

David Bell, Peter Fader and Barbara E. Kahn

This Wharton course will teach the fundamentals of marketing by getting to the root of customer decision making. The course will focus on branding strategies, customer centricity and new market entry

Oct 14-9 weeks

 

University of Michigan

Introduction to Finance

Gautam Kaul

This course will introduce you to frameworks and tools to measure value; both for corporate and personal assets. It will also help you in decision-making, again at both the corporate and personal levels.

Oct 7-15 weeks

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COSHRM Conference Marmot

By |2013-09-02T13:56:12-04:00September 2nd, 2013|Categories: Uncategorized|

COSHRM Conference Marmot

On Saturday after the COSHRM conference in Keystone, CO we went hiking down the mountain. The wildlife was very friendly as illustrated by this Marmot who allowed us to get quite close and posed for our new 2014 Calendar.

The conference was a great success. Our presentation was a case study on ADP’s restructuring and development of global HRM competencies. The competencies were developed to train sales professional on the activities of global HRVPs to be become effective trusted advisors. The research was also used to train HR leaders in ADP so they could be better partners with the sales organization. We had about 100 people in the room who asked quite a few questions. The presentation highlighted the 4,500 pages of research on global HRM and showed how linking HRM with line management sales resulted in more sales but also could transform HR into a strategic asset.

If you would like copies of the presentation email: Information@birchtreeglobal.com and include your name, email, and phone.

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Cloud Computing Taxes in India-by Cherry Bansal, C.A.

By |2013-08-15T06:20:29-04:00August 15th, 2013|Categories: Uncategorized|

Note:  For more information about Cherry Bansal and this critical component of taxation in India contact Birchtree Global.

Cloud computing is a trend that affects all industries in the globe. It offers businesses a flexible and scalable way to quickly outsource IT functions to third party providers, as well as using a powerful medium to conduct a borderless business. Broadly, it is a term used to describe a pool of shared resources, both hardware and software, which is available on demand. It is of course scalable and accessible anywhere in the world with an Internet connection. With the growing market for cloud computing services, cloud service providers on the one hand are struggling over how to effectively manage the tax treatment of cloud related operations and cloud service users on the other hand are worried about their tax withholding liabilities.

To establish the Tax Treatment It is important to establish the category of cloud activity. Cloud Models basically can be Infrastructure based, Platform Based or Software Based.

In Infrastructure based cloud service, both Hardware and Software are the components to service

In Platform based cloud service, more content of software is used.

In Software based cloud service, only software is there such as any application software.

 

Type of Taxes impacting cloud computing in India:

Now In India there are basically 3 taxes which are impacting taxation around cloud computing:

1)    Income Tax

2)    Service Tax

3)    VAT (Value Added Tax)

In this article we have tried to cover major aspects of all the three taxes. Let’s start with Income Tax.

Income Tax impacts the cloud computing in domestic transactions as well as cross border transactions. In domestic arrangement where both the provider of service and receiver of service are Tax Residents of India , the provisions of Income Tax Act,1961 will be applicable while in cross border transaction where one party is Tax Resident of other country then together with Income Tax Act,1961 the respective Treaty will also be affecting the tax imposition. India tax laws don’t permit following the case laws, decisions made in other countries.

When a user is paying for cloud computing services , The first and foremost factor to be resolved is the categorization of the payment, Whether it is payment for a service , use of equipment or software where one is getting the right to use the software.

Liability of user of service in India: The user of the service has the onus to with hold the tax based on the category of payment and respective provisions. If the user goes wrong on Tax withholding then there are below consequences:

-Pay the Interest for Non deduction and Non deposition

-Pay the Penalty in lieu of prosecution/prosecution

-Disallowance of the payment as Expense from Business Profit

The most important factor for determining the tax impact is to establish whether the provider of the service has the Permanent Establishment (PE) in India or not.

PE issue is really a vulnerable issue in India. Except from the “fixed place of business” India has the concept of 2 types of other PEs-

Service PE

India has a clause of Service PE in its treaties which makes a foreign enterprise’s PE in India if its employees or other personnel are present in India to provide services and their presence exceed a specified number of days.

Agency PE

India has a clause of Agency PE in treaties with some countries specifically providing that the securing of orders by a dependent agent for or on behalf of a non resident will result in an agency PE.

These provisions in the treaties make PE definition quite wide thus the taxable nexus.

WHETHER THE PLACEMENT OF SERVER CONSTITUTES A FIXED PLACE OF BUSINESS THUS CONSTITUTES A PE OR NOT?

OECD Model and UN Model has different provisions guiding this factor but the Tax Authorities of some jurisdictions takes an aggressive view over this issue for example Australia and India Tax Authorities are saying to Google /Facebook like service providers that they are generating revenues by users spread across the world therefore they should attribute their profits to all the countries and pay taxes accordingly irrespective of the place where their server is located.

ROYALTY AND FEE FOR TECHNICAL SERVICES?

Whether a payment for the cloud service is Royalty payment or fee for Technical services has to be determined in conjunction with domestic law of the source country and applicable Tax Treaty.

In some Treaties there is no clause for Fee for Technical Services. In that case the payment made as such will not be taxable in India.

 In India-US Treaty, there is a Make Available Clause so if the payment qualifies as a fee for technical service but that doesn’t satisfy the make available clause then the payment will not be taxable in India.The cases related to Software Licensing are pending decision in the apex court of India and once the decision is made, we may have that ambiguity over.

Service Tax

Service Tax is imposed on the provision of services in India. The current rate of Service Tax is 12.36%.

The cloud computing transactions can be categorized as “Business Support Services” or “Supply of tangible goods for use”.

If it is falling in “supply of tangible goods for use” then if the service provider in India providing services out of India, it will not qualify as “Export of Service” thus taxable @ 12.36%.

The category of “business support service” is quite wide and beneficial for the assessee as it qualifies for Export of Service when the user of the service is outside India thus Exempt from Service Tax.

WHETHER SERVICE PROVIDED IN INDIA FROM OUTSIDE INDIA IS TAXABLE FOR SERVICE TAX:

The cloud computing service if provided in India is taxable on reverse charge basis where the receiver of service from outside India needs to pay the service tax.  The receiver may or may not charge back this service tax to the service provider. If he charges back then the service tax amount will add to the cost of service provider as he will not be able to take the credit of service tax so paid.

WHETHER SERVICE PROVIDED OUTSIDE INDIA FROM SERVICE PROVIDER IN INDIA IS TAXABLE FOR SERVICE TAX:

It is taxable as per the category of service as explained above. If the service is provided as Business Support Service then it will qualify as Export of Service so not taxable otherwise it is taxable.

Value Added Tax (VAT)

Service Tax and VAT are overlapping each other in cloud computing transactions.

VAT is levied on the sale of goods and also leasing of the goods where the possession and control to use the underlying product is transferred to the user. The rate of VAT varies from 5% to 13.5%.

In cloud computing transactions NO Control and possession of the server is transferred rather a place is provided on the server to use against a payment but the user is not authorized to control the server.

The underlying contracts need to be drafted very carefully and it should state implicitly that there is no real or deemed or implied possession or control with the user. In some cases we have seen that the contract says that the user has the right to dictate the type of hardwares to be used. The VAT Authorities has used this clause against the assesee saying that it shows that the user has the control over the equipments of the service provider therefore, it is covered in VAT Nexus and thus taxable.

 

 

 

 

 

 

 

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REFORMS IN INDIAN FOREIGN DIRECT INVESTMENT BY CHERRY BANSAL

By |2013-08-13T21:50:14-04:00August 13th, 2013|Categories: Uncategorized|Tags: , , , |

After a long spell of no activity on the foreign direct investment (FDI) policy front, there has been a flurry of recent activity by India’s Union Government. Significant changes have been announced to the FDI regime across the retail, domestic aviation, broadcasting and power industries.

Red letter day for the retail industry
The government has announced that foreign companies can now invest up to 51% in the ‘multi-brand product retail’ format, although it has been left to the various states to decide whether they will actually allow this. The government had tried to usher in FDI in multi-brand retail previously but faced stiff resistance from both opposition party members and allies. Nevertheless, Indian and foreign companies including Bharti Enterprises, Future Group, Carrefour, Tesco and Walmart, have welcomed the recent news.

The rules on brand ownership and the requirement to source 30% of products locally from micro, small and medium-sized enterprises have been relaxed for companies seeking FDI in single-brand product retailing. Swedish furniture giant IKEA was among those foreign companies that had wanted the government to ease the rules relating to sourcing.

Emotions soar 
The Indian airline industry has also been given a welcome boost with the government allowing FDI of up to 49% in existing domestic carriers by foreign airline companies. A high tax structure on Aviation Turbine Fuel (ATF) and a steep rise in airport charges had left most of the industry’s players feeling bleak after a cumulative loss of approximately US$2.4bn last year. The industry clearly needed a helping hand on the policy front.

This announcement will be a morale booster for Kingfisher airlines in particular, which saw losses in excess of US$460m in the last financial year. Companies such as British Airways, Gulf Air and Middle Eastern Airlines have been eagerly waiting for the government to allow them to be part of the Indian airline story. Investment will require government approval, with foreign companies requiring clearance from the Foreign Investment Promotion Board and Home Ministry.

Know-how and technology
The cabinet also approved a decision to increase the FDI limit in the direct-to-home segment from 49% to 74%. Any investment beyond 49% will require government approval. The industry has welcomed the move saying that the increased investment limit will go a long way towards achieving the government’s target of 100% digitalisation by 2014.

The final major decision was to allow FDI of 49% in power trading companies. This is again a welcome step that will allow the power trading markets to mature by permitting foreign companies to bring in capital, as well as know-how and technology.

 Comparison between Earlier Limits/Entry Route and New Limits/ Entry Route:

Industry

Current Limit

Current Route

Proposed Limit

Proposed Route

Petroleum and Natural Gas Refining

49%

FIPB

49%

Automatic

Commodity Exchanges

49%

FIPB

49%

Automatic

Stock Exchanges

49%

FIPB

49%

Automatic

Power Exchanges

49%

FIPB

49%

Automatic

Insurance

26%

Automatic

49%

Automatic

Defence Production

26%

FIPB

100%

Cabinet Committee on Security   Approval

Asset Reconstruction Companies

49%

FIPB

49%

Automatic

 

100%

FIPB

Credit Information Companies

74%

FIPB

74%

Automatic

Single Brand Retail Trading

100%

FIPB

49%

Automatic

 

100%

FIPB

Basic and Cellular Services

74%

FIPB

49%

Automatic

 

100%

FIPB

Courier Services

100%

FIPB

100%

Automatic

 Cherry Bansal is one of Birchtree Global’s Indian partner firms.  She provides tax consulting services for clients in India. 

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