India: corporate business easier thanks to upcoming tax revolution

For some time now there has been talk of India and its enormous potential, but it is not always easy for companies to find the information they need to understand what are the benefits and business opportunities of this huge market-Italy is now only India's 24th largest trading partner globally.

Yet India has all the characteristics to be able to start winning projects: Many economists and analysts are talking about an imminent overtaking at the expense of China, the economy is traveling at a rate above 7%, and the current Modi government is implementing a series of reforms precisely with the aim of unleashing the country's enormous potential and deeply affecting the economic and social system by facilitating business activities.

These include the recent and ambitious GST regulations (Good and Services Tax, i.e., the goods and services tax), which was defined as. one of the most important tax reforms in the country's history and will go into effect as of July 1, 2017.

WHAT DOES THIS LAW PROVIDE FOR? AND WHAT ARE THE BENEFITS FOR BUSINESSES?

It is a reform that is expected to unify and simplify India's complex tax system and kick-start a real revolution from a business and tax perspective: all taxes indirect, local and central already existing, Will be replaced by a single lower tax, the GST. In India today, the tax system changes from state to state (a condition that causes significant slowdowns for trade interchange in addition to the payment of various taxes), but the introduction of the single taxation system will exponentially boost corporate business who will then be able to carry out their business operations more easily and directly, avoiding the so-called “cascading effect” of taxation.

Manifold will be the effects of this reform:

• there will be a further economic growth;
• Foreign companies will find it easier to operate in India, both in terms of Foreign Direct Investment than of operations import-export;
• the entire manufacturing sector and that of the services will have important benefits.

WHAT CAN YOUR COMPANY DO? DO YOU WANT TO LEARN MORE?

Despite the great progress in doing business, India is a country that still presents some complexities: for this very reason, and in light of the new law, it is appropriate for companies that are already working in India, or that want to enter the market, to know adequately the mechanism that regulates the new taxation system.

Octagona, Italy's leading company in business internationalization in India, can help you!

Octagona, which has been present in the Subcontinent for 15 years thanks to its direct offices in New Delhi and Bangalore, can best support your business, building customized projects and assisting your company with regard to all the Tax, legal, customs and administrative issues.

For more information about the law and about our activities contact us at the phone number 059.9770184 or to the e-mail address [email protected]: you will receive all the information you need.

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