India and Albania signed an Agreement for Avoidance of Double Taxation

The Union Government of India and Government of Albania on 8 July 2013 signed an Agreement for Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to the Taxes on Income and on Capital (DTAA). The agreement was signed to provide tax stability for the residents of both the nations. It would also facilitate mutual economic cooperation between the two countries. The signed agreement would also stimulate the flow of investment, technology and services between India and Albania. The agreement incorporates provisions for effective exchange of information between tax authorities of the two countries, which also includes exchange of banking information and supply of information without recourse to domestic interest.

Source : JaganJagrosh

HP Agrawal: Is royalty paid by a non-resident to another taxable in India?

The issue for consideration is as to whether the royalty paid by the foreign manufacturers on manufacturing of the goods outside India could also be taxed in India if such goods are sold in India. In terms of section 9(1)(vi)(c), royalty payable by a non-resident, where the royalty is payable in respect of any right, property or information used or services utilised for the purposes of a business or profession carried on by such person in India, is taxable in India because such royalty is treated as ‘deemed’ to accrue or arise in India in the hands of recipient of royalty.In an interesting recent case (ITA - 3700/D/2009), a US Company granted a non-exclusive and non-transferable worldwide license of its patents developed on CDMA technology to wireless Original Equipment Manufacturers (‘the OEMs’) outside India to make, import, use and sell CDMA handsets and wireless equipment (the ‘Products’) anywhere in the world. In consideration for the grant of licence, the US Company charged a royalty from OEMs.

Source : Business Standard

India: Financial Position in the Fund as of August 31, 2012 - IMF

Source : www.imf.org

Shapoorji Pallonji, New Vernon to sell stakes in 3 IT Parks for Rs 2000 crore

Shapoorji Pallonji Real Estate and PE fund New Vernon are selling their investments in three Information Technology (IT) parks in Chennai, Pune and Gurgaon for a cumulative value of 1,500-2,000 crore, a person directly involved in the transaction told ET."They have been in the market for some time now. Shapoorji holds 26% stake in these parks while the remaining is held by PE fund New Vernon, which it picked up in 2006," said two investment bankers, requesting anonymity.A Shapoorji Pallonji spokesperson did not respond to an email query sent by ET. Repeated phone calls to New Vernon went unanswered.The real estate arm of Shapoorji Pallonji Group has a chain of IT parks in special economic zones, called SP Infocity, across locations such as Nagpur, Gurgaon, Manesar, Mohali, Kolkata, Chennai and Mysore.Shapoorji Pallonji Real Estate is currently building a 2.70 million sq ft IT park in Chennai, which is being developed in two phases. The first phase, spread over 950,000 sq ft, has been completed and is being leased to firms such as HSBC, Amazon and Saksoft.

Source: ET

Treasury Sells $5 Billion of AIG Stock in Third Offering

The U.S. Treasury Department agreed to sell $5 billion of shares in American International Group Inc. in a stock offering, with the bailed-out insurer buying $2 billion of the total.The Treasury is selling 163.9 million shares at $30.50 each, compared with the May 4 closing price of $32.83, the department said in an e-mailed statement yesterday. The transaction, the government's third offering of AIG's shares since last May, reduces the Treasury's stake in the insurer to 63 percent from 70 percent, according to the statement.Chief Executive Officer Robert Benmosche, 67, has sold assets to help raise funds to buy back shares from the U.S. The company said in March that dividends from insurance subsidiaries along with proceeds from divesting a plane-leasing unit, a stake in Hong Kong-based AIA Group Ltd. and other holdings will allow it to generate as much as $30 billion that could be returned to shareholders by the end of 2015."The company has been able to monetize sales of non-core assets and we expect this to continue for the longer term," JPMorgan Chase & Co. analysts led by Arun Kumar said in a note to clients May 4, before the sale was announced.

Source: Sfgate

UK's largest fund Schroders acquires 25% stake in Axis Mutual Fund

Britain's largest asset management company Schroders has acquired a 25% stake in Axis Bank-promoted Axis Mutual Fund for an undisclosed amount. The deal will help the Indian fund house access Schroders' global distribution network and advise overseas funds invested in Indian securities.The Economic Times had written on March 14 that Schroders Investment Management was in talks with Axis Bank to acquiring stake in its mutual fund arm. As part of the deal, Schroders will have one board member each on the AMC's board and Axis Mutual Fund trustee company. Schroders Investment Management is a UK-based firm managing $291 billion worldwide. Schroders had applied to the Securities and Exchange Board of India (Sebi) in April 2008 to start a mutual fund business in India, but did not secure a licence till last year. Axis Mutual, which started operations in 2009, has equity assets worth Rs 640 crore. Axis Mutual Fund's total assets under management (AUM) stood at Rs 8,815 crore as on March 31.Said Rajiv Anand, managing director & CEO of Axis Mutual Fund, the deal valuation is in line with other deals struck during the year."The deal will help us promote our fund products globally through Schroders' distribution network. Schroders will also bring their products to India," said Rajiv Anand, managing director and CEO, Axis Mutual Fund.

Buffett: My successor is in the dark too

In his annual investor letter on Saturday, Buffett said Berkshire's board had identified someone who will replace him as CEO when the 81-year-old investor eventually leaves the post. But he did not identify that person in the letter, and in a CNBC interview on Monday, he rejected suggestions that he should. The public does not know who will be the next CEO of other major corporations, he said, and there is a disadvantage to having a "crown prince" in place. "Well, we have four stocks that we have $45 billion invested in: American Express, Coca-Cola, Wells Fargo and IBM. Every one of those four companies ... has changed management since we bought our shares. I didn't have the faintest idea who the successor of management would be in any of those four, but we've put billions and billions of billions of dollars in there," Buffett said in an interview from the printing plant of the Omaha World-Herald, the hometown newspaper he bought late last year.

Source: Reuters

Gati in talks to sell stake in shipping arm to Bernhard Schulte

Hyderabad-based logistics major Gati is in talks with German ship-management company Bernhard Schulte to sell a strategic stake in its loss-making shipping business to raise cash to tide over the financial crisis. Bernhard Schulte will acquire significant stake in Gati's demerged shipping business, Gati Ships, helping it to charter container vessels to capitalise on the growing cargo trade emerging out of India, said a person close to the transaction. Loss-making Gati Ships, founded in 1989, owns four container vessels, fetching a valuation of close to 200 crore, analysts said. Bernard Schulte, which manages a fleet size of more than 650 vessels, operates in 25 countries.

Source: Economic Times

Hero MotoCorp to buy minority stake in Erik Buell Racing

Hero MotoCorp, the world's largest two-wheeler maker, will buy a minority stake in US motorcycle firm Erik Buell Racing (EBR) for an undisclosed amount. "We have a flexible free-flowing pact with EBR, which would be developed into a equity partnership," Hero MotoCorp MD and CEO Pawan Munjal said. The move is aimed at securing uninterrupted technological support from the US racing motorcycle maker once associated with iconic brand Harley-Davidson. After Hero parted ways with Japanese major Honda, its partner for 27 years, last year, industry watchers had identified lack of cutting-edge technology as the biggest challenge for the Indian firm to hold on to its leadership position in the market. Hero had last week announced a technology tie-up with EBR, its first partnership after splitting with Honda.

Source: Economic Times