|
Published by the Press, Information & Culture Wing, Embassy of India |
In this Issue Opinion: Kerala: Asia's Cradle of Christianity Feature: Interview with ISRO Chairman
|
 |
INDIA CONCERNED OVER TAX ON SOFTWARE
BY JAPAN India has expressed its concern over Japan's insistence on levying 20 per cent withholding tax on Japanese firms importing software from India, breaching provisions of bilateral Double Taxation Avoidance Treaty (DTAT), a top Indian government official has said. At secretary level talks on bilateral economic trade held in Tokyo in February last, India conveyed its displeasure over Japanese insistence for charging 20 per cent withholding tax on software exported from India, S Devare, secretary (economic affairs), ministry of external affairs, said. However, Japanese side is reported to have explained that it was due to some misunderstanding in the provisions of the bilateral double taxation avoidance treaty. "India does not levy tax on software exports and hence insistence on deducing tax at source will breach provisions of the treaty," president of National Association of Service and Software Companies (NASSCOM), Dewang Mehta, said. "This would harm our bilateral trade relations," Mehta said, adding, "Japanese companies find Indian software as an extremely cost-effective and high quality and these firms themselves would be at disadvantage in the long run." India's software exports to Japan are expected to touch Rs four bn in 1998-99. It was four per cent of total software shipments of the country in 1997-98. INDO-TAIWAN TRADE GROWS 21 PER CENT INDIAN EXPORTS TO GERMANY
TOUCHES Rs EIGHT Billion Imports from Germany slumped 13 per cent to Rs 87.14 bn during the same period, Mr Kebschull said and blamed the industrial slowdown in the country for the drop. "Since German exports consists of more than 80 per cent of hi-tech machinery and equipment, they are high priced and thus less competitive in lower income countries," he said. However, the IGEP director said German imports this year may not shrink further because of the recovery of Indian industry. CHINA ASKS FOR DETAILS ON
DEFAULTERS China has asked India for details on Chinese traders who have reportedly not honoured letters of credit (LoC) entered into with Indian seafood exporters. "Some people (in India) have raised this question to us. We have asked them to provide details," Chinese economic and commercial counsellor in India, Zhou Hao said. At least Rs 300 mn worth LoC have not been honoured
by Chinese seafood traders leading to Indian seafood exporters being asked not to enter
into arbitrary export deals with traders in Beijing. "Our people normally do not
default any commitment. Our government will not allow such things," Mr Hao said.
Indian traders and officials would have to first provide details and China would then have
to find out what went wrong before taking any further steps, he said. "First, we will
have to find out the versions on both sides and spot what has gone wrong," he said. |