Foreign debt can be made cheaper for India Inc: RBI
The Dollar Business Bureau There should be a uniform rate of withholding tax for foreign borrowings irrespective of the currency and type that would cut down the cost of such borrowings for Indian firms, suggested the Reserve Bank of India (RBI). According to the experts, the ability of Indian firms to raise funds will be improved by easing the tax given that funds are expected to flow back to the US as interest rates increase there. Presently, the interest paid to non-residents on foreign currency borrowings is subject to 5-20% withholding tax, with 10% being the standard rate. Some priority segments such as infrastructure are being charged at a rate of 5%. There are exemptions provided by the government on money ...
Govt clears 16 FDI proposals worth Rs. 4,722 cr
The Dollar Business Bureau The government on Thursday approved 16 Foreign Direct Investment (FDI) proposals worth about Rs. 4,722 crore. It deferred six proposals and rejected eight, while one proposal, it said, didn’t lie before the FIPB. “Based on the recommendations of Foreign Investment Promotion Board (FIPB) in its meeting held on 29th September 2015, the government has approved 16 (sixteen) proposals of Foreign Direct Investment amounting to Rs.4,722 crore.” Ministry of Finance said in a statement. Companies whose FDI proposals were approved included IVF Trustee — seeking approval for the proposed investments by Indium V and Cayman Fund in units of IVF V worth Rs.608 crore— and Aegon Religare Life Insurance Ltd, which had asked permission for the transfer of its shares ...
