Skip to main content

No extension of deadline to implementnew bilateral investment treaty framework

India will not extend the March 31 deadline for other countries to renegotiate their investment agreements and align them to a new investment framework, commerce and industry minister Nirmala Sitharaman said on Tuesday.
Further, investments from countries that fail to renegotiate investment protection agreement by April 1will not get complete benefit under any treaty
With only three months left for India’s Bilateral Investment Treaty (BIT) to come into force, not many countries have approached the government to renegotiate their existing investment pacts based on the model BIT text.
“We had given one year’s time for countries with whom we have investment agreements to come and renegotiate them… We are waiting for them to come and talk,” the minister said
There will be a hiatus between the expiry of old pacts and the inking of new ones during which investors will not get the same level of treaty protection.
The European Commission (EC) has raised concerns over negotiations for a fresh BIT.
However, India cannot individually negotiate the new agreement with countries in the European Union (EU) with whom it is also negotiating a Bilateral Trade and Investment Agreement (BTIA).
It is up to the EU and its members to come to India and decide…Irrespective of the trade negotiations, the investment agreement will come into force,” Sitharaman said.
The government came out with the revised model text for BIT in 2015 and all existing investment protection agreements will be null and void from March 31.
The revised model BIT will be used for renegotiation of existing BITs and negotiation of future BITs and investment chapters in various free trade pacts. The model excludes matters such as government procurement, taxation, subsidies, compulsory licences and national security to preserve the regulatory authority for the government.
It has a provision that international investors have to first exhaust the option of local judicial system at least for five years before going to international arbitration mechanism as against the extant pacts that contain arbitration clauses which give a private investor the right to initiate legal proceedings against a foreign country, if it has breached investment protection standards.
India has received several dispute notices from investors on the BITs signed on the basis of old model text of 1993 under which it had inked treaties with 83 countries.
Due to this provision, Devas Multimedia won an arbitration case against India when the government cancelled a contract given to the company after discovering irregularities. Cairn Energy Plc and Cairn UK Holdings Ltd have initiated international arbitration under the India-UK Bilateral Investment Protection and Promotion Agreement (BIPA), wherein it has sought $5.6 billion in compensation from India.
Last year, the Union Cabinet approved the first BIT in accordance with the new framework between India and Cambodia to boost investment.
WTO ISSUES Ahead of a key meeting during the World Economic Forum in Davos in a week’s time, India on Tuesday stated that ways for easier trade in services and the ongoing Doha Round issues would be high up on its priority for negotiations at the World Trade Organization (WTO) as it prepares for the ministerial meeting in Argentina later this year
Even as Sitharaman reiterated India’s stand on food security issues, she stated that new issues such as e-commerce and government procurement would be included in the WTO's agenda only after all countries reach a consensus.
The Economic Times New Delhi,11th January 2017

Comments

Popular posts from this blog

New income tax slab and rates for new tax regime FY 2023-24 (AY 2024-25) announced in Budget 2023

  Basic exemption limit has been hiked to Rs.3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed. According to the announcement, 5 income tax slabs will be there in FY 2023-24, from 6 income tax slabs currently. A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs.5 lakh to Rs.7 lakh. Thus, individuals opting for the new income tax regime and having an income up to Rs.7 lakh will not pay any taxes   The income tax slabs under the new income tax regime will now be as follows: Rs 0 to Rs 3 lakh - 0% tax rate Rs 3 lakh to 6 lakh - 5% Rs 6 lakh to 9 lakh - 10% Rs 9 lakh to Rs 12 lakh - 15% Rs 12 lakh to Rs 15 lakh - 20% Above Rs 15 lakh - 30%   The revised Income tax slabs under new tax regime for FY 2023-24 (AY 2024-25)   Income tax slabs under new tax regime Income tax rates under new tax regime O to Rs 3 lakh 0 Rs 3 lakh to Rs 6 lakh 5% Rs 6

Jaitley plans to cut MSME tax rate to 25%

Income tax for companies with annual turnover up to ?50 crore has been reduced to 25% from 30% in order to make Micro, Small and Medium Enterprises (MSME) companies more viable and also to encourage firms to migrate to a company format. This move will benefit 96% or 6.67 lakh of the 6.94 lakh companies filing returns of lower taxation and make MSME sector more competitive as compared with large companies. However, bigger firms have shown their disappointment since the proposal for reducing tax rates was to make Indian firms competitive globally and it is the large firms that are competing globally. The Finance Minister foregone revenue estimate of Rs 7,200 crore per annum for this for this measure. Besides, the Finance Minister refrained from removing or reducing Minimum Alternate Tax (MAT), a popular demand from India Inc., but provided a higher period of 15 years for carry forward of future credit claims, instead of the existing 10-year period. “It is not practical to rem

Don't forget to verify your income tax return in August: Here's the process

  An ITR return needs to be verified within 120 days of filing of tax return. Now that you have filed your income tax return, remember to verify it because your return filing process is not complete unless you do so. The CBDT has reduced the time limit of ITR verification to 30 days (from 120 days) from the date of return submission. The new rule is applicable for the returns filed online on or after 1st August 2022. E-verification is the most convenient and instant method for verifying your ITR. However, if you prefer not to e-verify, you have the option to verify it by sending a physical copy of the ITR-V. Taxpayers who filed returns by July 31, 2023 but forget to verify their tax returns, will get the following email from the tax department, as per ClearTax. If your ITR is not verified within 30 days of e-filing, it will be considered invalid, and may be liable to pay a Late Fee. Aadhaar OTP | EVC through bank account | EVC through Demat account | Sending duly signed ITR-V through s