Hello friends,
As we all know that the country is facing dearth of foreign investments with rupee devaluation quite similar to the great 1991 crisis.The govt. says that it is trying die-hard to augment FDI, however, given the current political environment and the situation of "Policy- Paralysis", with decline in ratings, i doubt the possiblity of doing so in near future.
Friends, we all knw that a lion's share of FDI in India comes thru Mautitius and Singapore route. Another truth is that most of indian black money is routed in these nations which comes back to india in the form of FDI...
To counter this, Revenue has been working upon GAAR rules.....if GAAR rules are implemented, then Tax collection targets can be achieved but the flow of FDI will have a serious blow.
Now the question arises, whether the GOI should focus on TAX Targets or take steps towards encouraging foreign investment.which is going to have a significant impact on the indian economy.
I invite the respected members to comment and express their view on this serious issue.
CAclubindia
