Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

India promises investors tax holiday

India may offer big-ticket incentives such as zero goods and services tax or a corporate tax holiday to woo multinational companies to the proposed coastal employment zones in Andhra Pradesh and Gujarat.

Incentives may be offered to companies that commit to creating a certain number of jobs.

A large number of multinational companies are scouting for locations that can offer low-cost labor with world-class infrastructure outside China.

Two proposals being considered under tax incentives include either giving a corporate profit tax holiday for five years to firms creating 10,000 jobs or a zero GST for three years and six years for creating 10,000 and 20,000 jobs respectively. These will be an upfront benefit for firms in contrast to the corporate profit tax holiday accrued only after attaining profitability.

Either benefit will help attract large firms in labor intensive sectors such as apparel, footwear and electronics.

Companies that do not commit to creating at least 10,000 jobs may not be offered a tax benefit but may still benefit from the business friendly ecosystem of CEZs that may include liberal labor laws.

Other incentives being considered include flexible land conversion rules, liberal economic environment, proximity to deep draft ports, public investment and autonomy, trade facilitation and trade liberalisation.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo