The SKP Advantage
India is reportedly the first country in the world to introduce statutory guidelines in the Companies Act, 2013 requiring certain companies to undertake CSR activities. Our note aims to provide an insight into the regulations governing CSR activities in India, issues clarified by the Ministry of Corporate Affairs and the benefits of integrating CSR activities into your business strategy.
India has the third largest armed forces in the world and a defence budget of about USD 40 billion, of which a substantial amount is spent on capital acquisition. India is estimated to procure at least USD 50 billion worth of equipment, parts and services over the next 10 years, making it one of the largest importers of conventional defence items globally. This presents a significant opportunity for foreign suppliers. In this update, we look at the regulatory framework for investing in the defence sector in India.
A recent judgment of the Mumbai Tribunal emphasised that if the import price for a related party is discounted compared to a third party’s import price, it may be accepted if appropriately justified and proved. Also, if the valuation is not finalised by the authorities within four months of replying to the questionnaire, it is necessary to evaluate if importers should stop paying the 1% EDD.