AD-HOC PAYMENTS TO FOREIGN COMPANIES WOULD BE SUBJECT TO TAX: The Authority for Advance Rulings (AAR) recently held that payments made to a foreign company, within the same group, for services availed from it, would be subject to withholding tax in India.

SUPREME COURT : INTER COUNTRY TREATIES WILL SUPERCEDE I-T ACT: In a major judgement, the Supreme Court has held that treaties for avoidance of double taxation between India and other countries will override Income Tax Act provisions

LICENCE FEE CUT FOR INFRASTRUCTURE FIRMS: Government today reduced licence fee for infrastructure providers to 6% of adjusted gross revenue from the existing 15% …

EASIER PASSAGE FOR INDIANS IN GULF: Indian nationals who have passed 10+2 will be eligible for getting ECNR (Emigration Check Not Required) status on their passports,

AD-HOC PAYMENTS TO FOREIGN COMPANIES FACE TAX RAP: The Authority for Advance Rulings (AAR) recently held that payments made to a foreign company, within the same group, for services availed from it, would be subject to withholding tax in India.

VAT'S DEBUT IN APR '05: States have finally agreed to play ball on value added tax (VAT) rollout. After missing over five deadlines since '01, states have now agreed to switch over from the existing sales tax system to VAT from April 1, '05

MEDICOS MAY STILL GET AN H-1B - Things may be looking up for Indian medical students in the US . The House Judiciary Subcommittee on Immigration, Border Security and Claims reauthorised a programme to allow foreign nationals who complete medical school in the United States to stay in the country if they agree to work as physicians in rural and underserved areas.

BUSINESS NEWS

FOREIGN FIRMS' LIAISON OFFICES TAXABLE HERE: AAR's ruling brings to light that business activities carried on in India, even if these are carried out by LOs, will be subject to taxes in India.

INTEREST PAID TO OCB IN MAURITIUS TAXABLE HERE: The Authority for Advance Rulings (AAR) recently held that interest on debentures paid to an investor, who is a resident of Mauritius, is subject to withholding tax in India, unless it is specifically exempted

WITH $71B, INDIANS LURE GLOBAL FUND MANAGERS: India has an estimated 19,000 high networth individuals (HNIs), who have over $1 million of assets each, and a total investibile asset base of $71 billion, growing at the rate of 20% per annum

EXPORTERS MAY NOT GET TAX SOPS: Exporters will have to reconcile themselves to paying income-tax on their export profits. The UPA government is in no mood to restore I-T benefits under Sections 80 HHC and 80 HHE, which have been fully phased out.

RELIANCE REPORTS BIG GAS FIND OFF ORISSA COAST: Reliance Industries has found gas off the Orissa coast, company chairman Mukesh Ambani said.

HERO HONDA RENEWS DEAL WITH HONDA: Motorcycle market leader Hero Honda is planning a Rs 200 crore investment this fiscal focussing on two new bike models, a scooter project and a proposed third plant.

BTVL'S RATING ON PAR WITH INDIA'S SOVEREIGN: Standard & Poor's (S&P) has rated Bharti Tele-ventures equivalent to the sovereign rating assigned to India, the highest that any Indian corporate has been assigned in the foreign currency category.

NEW DEVELOPMENTS AND JOINT VENTURES

GENTING BUYS 36% IN ABAN POWER: Malaysian conglomerate Genting has acquired a 36% stake in south India-based independent power producer (IPP) Aban Power Company for a consideration of Rs 47 crore.

INDIANISATION ADDS POWER TO COCA-COLA: Coca-Cola India is positioned as a major sourcing destination for its global operations.

JUBILANT BUYS 2 BELGIUM PHARMA COMPANIES FOR RS 75 CR: Jubilant Organosys has acquired two Belgium-based pharmaceutical companies in an all-cash deal of Rs 75 crore.

FLEXTRONICS WALKS AWAY WITH 55% IN HUGHES SOFTWARE FOR $226 MN: In one of the biggest tech deals in India, $15bn electronic manufacturing services company, Flextronics has acquired a 55% stake in Hughes Software Systems for $226m from the Rupert Murdoch-controlled Direc TV unit, Hughes Network Systems.

RELIANCE BUYS GERMAN POLYESTER FIRM TREVIRA FOR RS 440 CR: Reliance Industries, announced that it had acquired Trevira, a polyester company in Germany, for around Rs 440 crore (E80m), taking it closer to the position of the world's largest polyester maker.

HUTCH BUYS AIRCEL IN RECORD DEAL: Hutchison Essar has acquired the Chennai and Tamil Nadu operations of cellular operator Aircel, owned by NRI businessman C Sivasankaran

STAR, CDPQ SELL UTV STAKE AHEAD OF IPO: STAR has sold its stake in content company UTV, said to be close to 16%, to UTV's founder and principal shareholder Ronnie Screwvala.