TOURISM INDUSTRY: TRYING TO FIND A PLACE UNDER THE SUN
Article Abstract:
The Finance Ministry of the Government of India granted export house status to the tourism industry in November 1998. Incentives due to industries having export house status are, however, not given to tourism units. While other export units are exempted from local taxes, such incentive is not extended to the tourism industry. Even indirect taxes like sales tax, passenger tax and road tax are not reimbursed. The industry is reeling under complex tax structures. The infrastructure also needs to be improved. In all, 125,000 rooms are needed against 60,000 units available now. A total of 42,858 rooms are under construction. To attract foreign investment, the Government plans to increase automatic approval of foreign direct investment in hotels and restaurants from 51 percent to 74 percent. Tourist arrivals fell from 2.10 million in April- November 1997 to 2.01 million in the same period of 1998. India has 0.4 percent share in the world tourism market.(um) (kvr)
Comment:
The Finance Ministry of the Government of India granted export house status to the tourism industry in November 1998.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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HC RULING ON BRAND FRANCHISE MAY HIT TRADE
Article Abstract:
The Mumbai High Court has ruled that brand franchise is like a sale and is therefore taxable. The ruling was made in a case between the Commissioner of Sales Tax and Duke and Sons Pvt Ltd. This judgement is likely to affect trade as industrial houses may have to pay huge amounts as sales tax in cases where the group trademark is centrally owned. Groups like the house of Tatas, RPG Enterprise, NIIT and Aptech who earn royalty for lending the group name and goodwill may have to pay a sales tax on such earnings. (khr)
Comment:
The Mumbai High Court has ruled that brand franchise is like a sale and is therefore taxable.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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