IndusView Chairman Bundeep Singh Rangar comments on West's warns Iran against blocking the Strait of Hormuz, Arab League's Saudi observers withdraw from Syria, Greek bondholders negotiate to limit losses, Newt Gingrich's surprise South Carolina win, US debate on repatriating jobs from overseas and artist Damien Hirst's unique reward for his fans.
Monday, January 30, 2012
Thursday, January 26, 2012
Today, January 26, marks Republic Day in India, an annual event commemorating when the Constitution of India came into place on January 26, 1950.
Various celebrations are held throughout the country, with the largest taking place at the capitol (New Delhi). The highlight of the celebration is a parade that is held in New Delhi at the Rajpath with military members dressed in their finest attire, a favorite of everyone in attendance and watching on television from afar.
There is also always a state guest invited each year; this year it is Prime Minister Yingluck Shinawatra of Thailand. The President starts the ceremonies with a symbolic gesture by laying a headdress at the Indian Gate in memory of all Indian military members who have given up their lives for their country.
Following the grand parade are tributes to each state which portray the vast diversity of cultures through various displays such as poems, songs, and dance. The ceremonies are ended with the Beating Retreat, played by the Indian Army, Navy, and Air Force; a moving way to end such an important day.
Being one of the three national holidays in India, it is a favorite among all; Republic Day ignites strong patriotic feelings among everyone towards their country allowing each person to feel they are a part of something bigger than just themselves.
Enjoy your Republic Day celebrations…Happy India Republic Day 2012!
Friday, January 20, 2012
IndusView, 20 January 2012 (London) – The decision by India’s Supreme Court in favor of Vodafone Group Plc, the world’s biggest mobile phone company, is a positive signal to foreign investors worried about tax and investment policies in the world’s second fastest growing major economy.
“This was a litmus test won by foreign investors against an attempt by the Indian taxman to extend its jurisdictional reach,” said Bundeep Singh Rangar, Chairman of IndusView, an India-focused advisory firm. “It provides tax certainty to foreign investors as the verdict is a clear statement that deals done outside India that involve Indian assets, are not taxable in India.”
With a recent decline in Indian stock valuations, drop in the Indian rupee currency and the opening up of sectors such as India’s retail market, Indian companies are likely to become attractive targets for foreign acquirers this year. They were cautious and even nervous, however, given the unknown tax implication of Vodafone’s 2007 $11 billion acquisition of Hutchison Essar Ltd, India's second largest GSM mobile service. The court decision today ends uncertainty in a manner that’ll be welcome news by foreign companies seeking to invest in India.
In 2011, seven of the 10 multi-billion dollar deals were inbound ones, i.e. foreign companies buying Indian ones. Multi-billion dollar deals included Vedanta Plc’s acquisition of Cairn India assets that was also mired in a 15-month long regulatory quagmire and BP Plc’s acquisition of Reliance’s energy assets. That’s likely to increase now that uncertainty is removed and could see a reversal of the 20% decline in deals in 2011. The value of merger and acquisitions and private equity investments in India totaled $54 billion in 2011 compared with $62 billion in 2010.
The Indian tax department sought 112.2 billion rupees ($2.2 billion) in capital gains tax on Vodafone International Holdings BV’s purchase of Hutchison’s mobile operations in India. While Hutchison profited from the sale, the tax department pursued Vodafone, saying the company should have withheld the tax from its payment to Hutchison.
Vodafone took its fight all the way to India’s Supreme Court to protest the potential $2.2 billion tax bill on the grounds that the deal was between two overseas companies, tax was applied retrospectively and capital gains tax is paid by the acquired company, not the buyer. If Vodafone’s appeal were unsuccessful, it could have seen its charge double to $5bn due to a penalty for non-payment of tax. It is now also entitled to a refund of $550 million deposit with the Indian tax authorities.
With a subscriber base of more than 851 million, the Indian mobile phone market in India has grown to become the second largest in the world after China after it was opened to private companies in the 1990s. Vodafone has the third largest subscriber base in India following market leader Bharti Airtel and Reliance Communications.
Tuesday, January 10, 2012
IndusView Chairman Bundeep Singh Rangar comments on Sarkozy and Merkel meeting for the Eurozone growth plans, Royal Bank of Scotland's Investment Bank head's £4m bonus, Free Trade talks among China, Japan and Korea, Michelle Obama as a canny political player and physicist Stephen Hawking's birthday.
Tuesday, January 03, 2012
IndusView Chairman Bundeep Singh Rangar comments on the Dollar vs. the Euro and its impact on the Eurozone markets on ET Now -- Closing Trade.