Strong support in recruitment
M+V is very professional in India HR market. They were able to provide us with strong support in our recruitment. We are satisfied with their service.
With the incubation solution from Maier + Vidorno , we successfully placed our products in the Indian market and established valuable product market presence, which we can now build on further with our subsidiary
BIS registration project
The BIS registration project went smooth and efficient. We are very satisfied with the way the documentation, communication and inspection on-site was handled from the Maier+ Vidorno Team. We are happy to recommend working with M+V in India – with the expert’s advice you will need.
India has great investment potential for foreign companies if you manage the highly complex business environment professionally. Our experience shows – Maier+Vidorno is a competent partner to efficiently set up and run business.
Market Presence and Profitability
The cooperation of JUMO and Maier+Vidorno is a success story in India since 2008. Our sales, market presence and profitability in India shows constant growth. M+V knows about the challenges foreign companies face while doing business in India – and provides hands-on solutions.
Business Diagnostic and Implement Improvement
Maier+Vidorno understands business challenges in the Indian business environment and provides solutions with the help of its experts. M+V has experience in running business diagnostics and implement improvement and expansion strategies in various industries in India.
The recent, rapid and extensive evolution in the technological sphere facilitates enterprises to emerge with business models. This has enabled them to shift their profits to low or no-tax jurisdictions. These business structures have consistently found ways to remain out of the ambit of the global tax system. The fundamental reliance on the profit allocation rules based on the arm’s length principle for tax determination and collection. The Organisation for Economic Co-operation and Development (OECD) is developing a framework to tax this emerging digital economy. Therefore in line with the OECD’s recommendations, India vides its Finance Act 2016 introduced an equalisation levy of 6%.
In line with the OECD’s recommendations of the BEPS (Base Erosion and Profit Shifting) Action Plan, India vides its Finance Act 2016 introduced an equalisation levy of 6% on payments made to non-residents on or after 1st June 2016 by:
for specified services which at present include payments for online advertisement and related services. The levy is of the nature of a direct tax. It is withheld by payer when the payment to non-resident enterprise is in excess of Rs 1 Lakh in FY. Also, such an enterprise is providing the specified service independent of the permanent establishment if any in India. The central government gets the credit for the deducted equalisation levy. They receive on the 7th day of the month immediately following the calendar month.
Alternatively, the Finance Act 2020 amended the Finance Act 2016 to widen the scope of Equalisation Levy. It introduced a new levy of 2% on the consideration received or receivable by a non-resident e-commerce operator (hereinafter referred to as operator) from e-commerce supply of goods or service or both on its own account or for the facilitation of such supply of goods or service or both:
The levy is not chargeable in the circumstance when the e-commerce supply or service being provided by the operator is connected with the permanent establishment of the operator if any situated in India or when the transaction is covered by the levy provisions of Finance Act 2016 or where the turnover from e-commerce supply or service is less than Rs 2 Crores. Unlike the levy of Finance Act 2016, where onus to deduct and deposit the levy was on the service recipient. Here the operator deposits the levy to the credit of the central government on a quarterly basis.
The Indian Finance Act 2020 has imposed a 2% tax on the sale of goods and services that take place through non-resident e-commerce operators having an annual turnover of more than INR 20 million. At that time, it raises criticism from different parts of the globe that the levy was broad and unclear. Also, a U.S. trade representative office had concluded that India’s equalization levy is ambiguous and fails to provide certainty to stakeholders. Indian Govt had issued its response stating that this levy is in line with the recommendations of the OECD.
Budget 2021 has provided certain clarifications on the contours of the equalisation levy for an online provider of goods and services. Thus, these clarifications are as under:
Budget 2021 has further clarified that the taxable amount for which the equalisation levy has to be paid by an e-commerce platform will include the entire sale amount. This means that tax is applicable to the entire value of goods or services. Even though where the goods or services are provided by a person other than the aggregator.
The clarification brought in the Indian Finance Bill 2021 is a welcome move as it provides clarity and also specifies the scope of the equalisation levy. The multinational companies dealing with the businesses locally are now clear on when the equalisation levy will apply to them. Specifically, by giving an edge to the royalty and FTS transactions over the equalisation levy, the government has clarified its position and intent of introducing the equalisation levy.
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