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FDI inflows into India jump 18% to a record $46.4 bn in 2016 despite global fall

From Barclays angle you came to double taxation issue?
Ok.

India has DTAA agreement with 85 nations.
Why some of them, with better GDP than Mauritius, are not in the same league as Mauritius, as for the top FDI source?

Mauritius is a tax haven, but so are 90 other countries offering tax shelter.

So?

BTW, which country sends FDI equal to its GDP value?
You have 2 issues.
1. You are not aware of facts.
2. You have blind hatred of Modi. You will infact never hestitate to harm India itself if you felt it would also harm Modi.


These 2 factors combined make you look stupid. Have you wondered why in all this time, no Indian takes your posts seriously? It is because the above mentioned 2 factors.

Let me help you reduce your ignorance on factor 1 at the very least.

The majority of the FDI money comes from Mauritius because India (In 1982 by Indira Gandhi ) that allowed a special provision of Capital Gains exemption to the Island nation for investment coming from there.

There on out slowly the Island became a hub for foreign investors who setup shell companies there to Indian businesemen re-routing their money from Mauritius to avoid paying Capital Gains on profits made.

The current agreement signed by GoI, gives a window to Mauritius under grandfathering of the original treaty. Till 2017, exemptions will stay in place. After that, they will be 50% of the domestic Indian rate for a period. After that period, the tax will be the same as domestic Indian rate always.

For this reason, for a period of the next few years(2 iirc), Mauritius will continue enjoy tax arbitrage advantages vis-a-vis India.

Next time, try not to make a fool of yourself. You have till now convinced no one on this forum on any of your views.

Regards


@r@ven21 , @PeegooFeng41
 
There on out slowly the Island became a hub for foreign investors who setup shell companies there to Indian businesemen re-routing their money from Mauritius to avoid paying Capital Gains on profits made.

Lol

You are only repeating what I said of dubious Mauritius FDI outflow to India.
Shell companies.

Scroll back you lethargic ladonna.

Post #9
This is Indian money in the form of shell companies that has taken place.

Now shoo..

And yes.
An ignorant ignored.
 
From Barclays angle you came to double taxation issue?
Ok.

India has DTAA agreement with 85 nations.
Why some of them, with better GDP than Mauritius, are not in the same league as Mauritius, as for the top FDI source?

Mauritius is a tax haven, but so are 90 other countries offering tax shelter.

So?

BTW, which country sends FDI equal to its GDP value?

I quoted Barclays as an example to show you that a nation's GDP is not exactly a limiting factor when it comes to assets of a company headquartered on its soil. You are linking an economic measure of a country to the financial parameter of a company which is not necessary.

And yes there are other tax havens. The deciding factor is double taxation agreement with low tax rate. BTW, Singapore is also a popular choice for conduit of investment in India. Usually in a given year Singapore or Mauritus are the largest source of FDI to India.

And yes there are countries which send FDI more than its GDP. Such countries act as a conduit to funnel money while saving tax. Barbados comes to mind. Its GDP is $ 4.5 billion / $ 4.0 billion euros in 2014-15 yet FDI outflow in Cash and Stocks is Euro 1.6 billion and Euro 3.6 billion respectively, making a total flow of 5.2 billion Euros in 2014.

http://trade.ec.europa.eu/doclib/docs/2011/january/tradoc_147213.pdf

There are many such Caribbean micro nations following exactly same idea. They have almost no economy except for using their tax jurisdiction.

Lol

You are only repeating what I said of dubious Mauritius FDI outflow to India.
Shell companies.

Scroll back you lethargic ladonna.

Post #9
This is Indian money in the form of shell companies that has taken place.

Now shoo..

And yes.
An ignorant ignored.

There are both shell companies and legitimate banks which conduit the flow of money. Even if your money is not tainted you will like to route it in a way to avoid higher corporate taxes. Most of legitimate investment funds do this. For investment in USA it is usually Barbados; for investment in India it is Singapore or Mauritius.

No one wants to pay more tax.
 
I quoted Barclays as an example to show you that a nation's GDP is not exactly a limiting factor when it comes to assets of a company headquartered on its soil. You are linking an economic measure of a country to the financial parameter of a company which is not necessary.

And yes there are other tax havens. The deciding factor is double taxation agreement with low tax rate. BTW, Singapore is also a popular choice for conduit of investment in India. Usually in a given year Singapore or Mauritus are the largest source of FDI to India.

And yes there are countries which send FDI more than its GDP. Such countries act as a conduit to funnel money while saving tax. Barbados comes to mind. Its GDP is $ 4.5 billion / $ 4.0 billion euros in 2014-15 yet FDI outflow in Cash and Stocks is Euro 1.6 billion and Euro 3.6 billion respectively, making a total flow of 5.2 billion Euros in 2014.

http://trade.ec.europa.eu/doclib/docs/2011/january/tradoc_147213.pdf

There are many such Caribbean micro nations following exactly same idea. They have almost no economy except for using their tax jurisdiction.

Money laundering, shell companies doing round tripping.
During 2G scam many countries came under scanner.
Reliance too had floated dozens of companies (with animal names)
This is the crucial factor.
 
Money laundering, shell companies doing round tripping.
During 2G scam many countries came under scanner.
Reliance too had floated dozens of companies (with animal names)
This is the crucial factor.
That is not the only reason why money comes from Mauritius and Singapore.

Imagine you have 10 billion dollars. You are in a country which has capital gain tax (15%). Perhaps does not have a double taxation agreement with India. If you want to invest in buying SEZ or Software Parks in India, how you will like to go?

1. Invest directly in India : Gains taxed at 20-30 % in India and gain taxed at 15% in your own country.

2. Even if your country had double taxation agreement with India, still pay 15% tax

3. Move your money into a bank in Mauritius (no tax) then invest in a fund in Mauritius which will then buy real estate etc in India. On sale of all these assets you will be taxed in Mauritius at 3% and avoid taxation in India and your own country.
 
That is not the only reason why money comes from Mauritius and Singapore.

Imagine you have 10 billion dollars. You are in a country which has capital gain tax (15%). Perhaps does not have a double taxation agreement with India. If you want to invest in buying SEZ or Software Parks in India, how you will like to go?

1. Invest directly in India : Gains taxed at 20-30 % in India and gain taxed at 15% in your own country.

2. Even if your country had double taxation agreement with India, still pay 15% tax

3. Move your money into a bank in Mauritius (no tax) then invest in a fund in Mauritius which will then buy real estate etc in India. On sale of all these assets you will be taxed in Mauritius at 3% and avoid taxation in India and your own country.

Money laundering, shell companies is a major factor.

To save on tax, you don't have to go to Mauritius and cough up even 3%
Buy Government bonds at 6% tax free. Period.
Example NHAI bonds.
 
Money laundering, shell companies is a major factor.

To save on tax, you don't have to go to Mauritius and cough up even 3%
Buy Government bonds at 6% tax free. Period.
Example NHAI bonds.

Oh yeah? What is the coupon rate on NHAI bonds 7-8% max? What is the gain on real estate? 10-20% to say the least?

And do you know that there is a limit on how much an Institutional investor can put money into these bonds. If they are raising 2000 carore only 1000 carore will be available for institutional investor. Too small for all the investor out there. Why do you think they almost always get oversubscribed?

Also any fund or individual balances their portfolio and they still do not want to pay tax -- Indian or Foreign investors. That is why these countries have such a huge industry to move money around. Work as a corporate treasurer or fund manager sometimes and you will understand when your own bonus depends upon saving tax, what kind of financial gymnasts you figure out.
 
That is equivalent to the entire CPEC investment(spread over multiple years) in one year!

Pakistanis are not going to like it. :lol:


Mauritius remained India’s top source of FDI inflows at $12.8 billion :lol:

That tells it everything.
 
Rupee turns green then turns red again.... Can not be called dollar. Can we?

Rupee or Dollar makes no difference so long it is moving into your business.

Cann't say about Bangladesh though. All the FDI they got in 2016 was less than what we got from Mauritius alone. Wait DAMN! it was about six times smaller.
 
Rupee or Dollar makes no difference so long it is moving into your business.

Cann't say about Bangladesh though. All the FDI they got in 2016 was less than what we got from Mauritius alone. Wait DAMN! it was about six times smaller.

Bangladesh is not dependent on FDI. We invest from our own coffer.
Besides, govt are very strict in financial engineering. Money laundering ?? you get 14 years straight.
 
Bangladesh is not dependent on FDI. We invest from our own coffer.
Besides, govt are very strict in financial engineering. Money laundering ?? you get 14 years straight.

Your own coffer? You mean that little nothing?
Oh btw, corruption perception index of bonglodesh is worse than India. So you have corrupt country and no investment. Better be corrupt and have investment first. Later you can become rich and corruption free.
 
Oh yeah? What is the coupon rate on NHAI bonds 7-8% max? What is the gain on real estate? 10-20% to say the least?

And do you know that there is a limit on how much an Institutional investor can put money into these bonds. If they are raising 2000 carore only 1000 carore will be available for institutional investor. Too small for all the investor out there. Why do you think they almost always get oversubscribed?

Also any fund or individual balances their portfolio and they still do not want to pay tax -- Indian or Foreign investors. That is why these countries have such a huge industry to move money around. Work as a corporate treasurer or fund manager sometimes and you will understand when your own bonus depends upon saving tax, what kind of financial gymnasts your figure out.

Why would an Indian (legitimate) money go to Mauritius and lose 3%?
 

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