This report includes various regularity compliance specifically for Hotels/Hospitality like FDI, ECB, Various Taxation matters and benefits for Hotel/Hospitality in various Taxation Laws with recent updates, Foreign Trade policy and etc
- Turkey has demonstrated robust macroeconomic growth in recent years and is expected to sustain growth of approximately 4-5% over the next few years according to international organizations.
- Foreign direct investment in Turkey's financial services sector reached $3.42 billion in 2013, accounting for 26% of total FDI in Turkey. Mergers and acquisitions in the sector totaled $1.6 billion in 2013.
- Private equity activity in Turkey reached $17.5 billion in 2013, with two deals completed in the financial services sector totaling over $250 million.
This document provides an economic update from Sri Lanka in March 2014. It includes the following highlights:
1) Commercial Bank was named Sri Lanka's Best Bank by Global Finance magazine. Several Sri Lankan economic indicators for January 2014 are reported, including a 23.2% increase in exports and a 7.9% increase in imports, leading to a smaller trade deficit.
2) Sri Lanka raised $500 million from a sovereign bond offering at a yield of 5.125%, the lowest among its international bond offerings. The order book was oversubscribed 8.3 times.
3) The ADB forecasts Sri Lanka's GDP growth to remain at 7.5% in 2014 and 2015, supported by strengthening
The IMF warns Sri Lanka against easing monetary policy due to inflation risks from electricity tariff hikes. While inflation eased in April, the IMF expects it to rise again as the full impact of higher power prices feeds through the economy. The IMF says monetary policy should remain on hold for now rather than being changed prematurely. A respected economist also argues that lowering interest rates alone will not bring sustainable growth without addressing structural economic issues.
This document summarizes recent economic and banking news from Sri Lanka. It discusses Commercial Bank's results and branch openings. It notes Fitch downgrading Sri Lanka's credit rating to B+ with a negative outlook due to high debt levels and weaknesses. Inflation is rising in Sri Lanka driven by increases in core inflation. The trade deficit widened in 2015 as exports declined while imports saw a smaller drop. Moody's also cut China's outlook to negative due to rising debt and policy uncertainties.
The IMF projects Sri Lanka's GDP growth to gradually recover to 4.7% in 2017, supported by construction and services. However, significant downside risks remain, including from potential capital outflows, delays in reforms, and higher-than-estimated costs from drought. Public debt is expected to rise slightly to 85% of GDP due to fiscal deficits and currency depreciation. Sri Lanka is also pursuing initiatives in renewable energy and waste management, while the tourism and retail sectors are expanding.
The document provides an economic capsule covering topics in banking and finance, the economy and business, and international and industry news. It discusses Sri Lanka's GDP growth, external sector performance, and deflation. It also analyzes views from the IMF on Sri Lanka and forecasts rising core inflation and monetary policy tightening risks.
Fitch notes that while Sri Lankan banks' capital ratios exceed regulatory minimums, their capital levels are relatively low compared to other emerging markets due to certain asset exposures receiving zero risk weights. Challenges remain for undercapitalized Sri Lankan banks from foreign currency borrowing, residual provisioning risks, and credit concentrations. Sri Lanka has not yet implemented Basel III capital reforms which would improve ratios over the medium to long term.
The document provides economic and business news updates on Sri Lanka, including inflation slowing in February 2015, credit growth maintaining an upward trend, external sector developments in 2014, and Sri Lanka holding discussions with the IMF and World Bank. It also summarizes Moody's view that Sri Lanka's revised
This document provides an overview of External Commercial Borrowings (ECB) policy and procedures in India. It discusses the key aspects of ECB including the regulatory framework, eligible borrowers and lenders, amount and maturity limits, end uses of funds, security/collateral requirements, and ongoing compliance procedures. The document separates the rules for ECB under the automatic route versus the approval route and provides details on important processes like obtaining loan registration numbers and recurring reporting requirements.
- Turkey has demonstrated robust macroeconomic growth in recent years and is expected to sustain growth of approximately 4-5% over the next few years according to international organizations.
- Foreign direct investment in Turkey's financial services sector reached $3.42 billion in 2013, accounting for 26% of total FDI in Turkey. Mergers and acquisitions in the sector totaled $1.6 billion in 2013.
- Private equity activity in Turkey reached $17.5 billion in 2013, with two deals completed in the financial services sector totaling over $250 million.
This document provides an economic update from Sri Lanka in March 2014. It includes the following highlights:
1) Commercial Bank was named Sri Lanka's Best Bank by Global Finance magazine. Several Sri Lankan economic indicators for January 2014 are reported, including a 23.2% increase in exports and a 7.9% increase in imports, leading to a smaller trade deficit.
2) Sri Lanka raised $500 million from a sovereign bond offering at a yield of 5.125%, the lowest among its international bond offerings. The order book was oversubscribed 8.3 times.
3) The ADB forecasts Sri Lanka's GDP growth to remain at 7.5% in 2014 and 2015, supported by strengthening
The IMF warns Sri Lanka against easing monetary policy due to inflation risks from electricity tariff hikes. While inflation eased in April, the IMF expects it to rise again as the full impact of higher power prices feeds through the economy. The IMF says monetary policy should remain on hold for now rather than being changed prematurely. A respected economist also argues that lowering interest rates alone will not bring sustainable growth without addressing structural economic issues.
This document summarizes recent economic and banking news from Sri Lanka. It discusses Commercial Bank's results and branch openings. It notes Fitch downgrading Sri Lanka's credit rating to B+ with a negative outlook due to high debt levels and weaknesses. Inflation is rising in Sri Lanka driven by increases in core inflation. The trade deficit widened in 2015 as exports declined while imports saw a smaller drop. Moody's also cut China's outlook to negative due to rising debt and policy uncertainties.
The IMF projects Sri Lanka's GDP growth to gradually recover to 4.7% in 2017, supported by construction and services. However, significant downside risks remain, including from potential capital outflows, delays in reforms, and higher-than-estimated costs from drought. Public debt is expected to rise slightly to 85% of GDP due to fiscal deficits and currency depreciation. Sri Lanka is also pursuing initiatives in renewable energy and waste management, while the tourism and retail sectors are expanding.
The document provides an economic capsule covering topics in banking and finance, the economy and business, and international and industry news. It discusses Sri Lanka's GDP growth, external sector performance, and deflation. It also analyzes views from the IMF on Sri Lanka and forecasts rising core inflation and monetary policy tightening risks.
Fitch notes that while Sri Lankan banks' capital ratios exceed regulatory minimums, their capital levels are relatively low compared to other emerging markets due to certain asset exposures receiving zero risk weights. Challenges remain for undercapitalized Sri Lankan banks from foreign currency borrowing, residual provisioning risks, and credit concentrations. Sri Lanka has not yet implemented Basel III capital reforms which would improve ratios over the medium to long term.
The document provides economic and business news updates on Sri Lanka, including inflation slowing in February 2015, credit growth maintaining an upward trend, external sector developments in 2014, and Sri Lanka holding discussions with the IMF and World Bank. It also summarizes Moody's view that Sri Lanka's revised
This document provides an overview of External Commercial Borrowings (ECB) policy and procedures in India. It discusses the key aspects of ECB including the regulatory framework, eligible borrowers and lenders, amount and maturity limits, end uses of funds, security/collateral requirements, and ongoing compliance procedures. The document separates the rules for ECB under the automatic route versus the approval route and provides details on important processes like obtaining loan registration numbers and recurring reporting requirements.
Key Takeaways:
- Overview of the FSR
- Global Macro Financial Developments
- Economic Growth and Financial Conditions in India
- Performance of Scheduled Commercial Banks
The document provides an economic capsule summarizing recent news in Sri Lanka and internationally. It includes the following key points:
1) Sri Lanka has been ranked as the top island economy for investment potential by an FT publication. However, foreign direct investment remains relatively low at under 1% of GDP.
2) The EU has restored Sri Lanka's access to preferential tariffs under the GSP+ trade scheme, providing an estimated annual tariff benefit of $330 million for key exports like apparel, seafood, and fruits.
3) China's One Belt One Road initiative involves over $1.3 trillion in infrastructure projects across 68 countries to revive trade routes and boost China's influence. Sri Lanka hopes to
The budget document provides an overview of Sri Lanka's budget highlights for 2016, including key figures on revenue, expenditure, deficits, and policy changes across several sectors of the economy. Some of the major changes proposed include voluntary mergers of banks to create larger national banks, incentives for investment in lagging regions and priority industries, tax reductions and concessions to promote the stock market and listed companies, and subsidies or guaranteed pricing for priority agriculture crops. The budget aims to boost revenue, reduce deficits, encourage private sector investment, and promote self-sufficiency in strategic industries.
The document provides a summary of economic and business news from Sri Lanka and around the world in December 2015. Some of the key points included in the summary are:
- Sri Lanka maintained a high ranking in the UN's Human Development Index in 2015. The economy grew 4.8% in the third quarter led by improvements in agriculture and industry. Inflation slowed to 2.8% in December.
- The Central Bank of Sri Lanka increased interest rates to restrain inflation and maintain monetary stability. Sri Lanka also signed $1.6 billion in foreign direct investment deals in 2015.
- Internationally, the US Federal Reserve raised interest rates for the first time in nearly a decade. The Economist forecast
A current account deficit occurs when a country imports more goods, services, and capital than it exports. This makes the country a net debtor to the rest of the world. India has been running a current account deficit for several years due to higher imports than exports. While foreign investment helps fund the deficit, a large and growing deficit could weaken the economy over time by draining reserves and causing currency depreciation if not addressed.
Personal Accident and Health Insurance in Indonesia, Key Trends and Opportuni...ReportsnReports
This document provides a 215-page market analysis report on personal accident and health insurance in Indonesia between 2012-2016. It finds that the market is expected to grow due to rising incomes and healthcare costs in Indonesia. However, fraud and the presence of government health insurance could hamper private insurance growth. The report includes historical data from 2007-2011 and forecasts to 2016 on topics like premiums, claims, market share by category and company profiles. It aims to help understand market trends, opportunities and the competitive landscape in Indonesia's personal accident and health insurance segment.
The document provides an overview of recent economic and business news from around the world. It discusses the weak global economic growth outlook according to the IMF, with risks shifting to emerging markets. It also summarizes that China's economic growth was the slowest in 25 years at 6.9% in 2015. Additionally, it covers topics such as the lifting of economic sanctions on Iran and the falling oil prices to oversupply. Global foreign direct investment reached an eight-year high of $1.7 trillion in 2015 according to UNCTAD.
ECB is basically a loan availed by an Indian entity from a nonresident lender
Most of these loans are provided by foreign commercial banks and other institutions
It refers to commercial loans availed from non-resident lenders with a minimum average maturity of 3 years
An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency. The government of India permits Indian corporates to raise money via ECB for expansion of existing capacity as well as for fresh investments.
The document provides an economic update from Sri Lanka including:
1) Sri Lanka's GDP grew 6.4% in the first quarter of 2015 led by strong growth in the services sector.
2) Sri Lanka signed articles of agreement to join the new China-led Asian Infrastructure Investment Bank which will fund infrastructure projects across Asia.
3) Sri Lanka's vehicle market saw record new car registrations in May 2015 as lower fuel costs and increased disposable income fueled demand.
The document provides an overview of recent economic, business, banking and international news. It discusses that the ADB trimmed growth forecasts for Asia due to slower growth in the US and China. It also notes that the IMF painted a dim picture for Europe and suggested more monetary stimulus may be needed as growth is projected to average only 1% over the medium term. Additionally, it summarizes that Moody's views Sri Lanka's credit profile as supported by strong growth but constrained by high government debt, though the stable outlook reflects an expectation that ongoing economic challenges will not lead to medium-term deterioration.
The document provides highlights of new policy reforms announced by the Prime Minister of Sri Lanka. The reforms focus on generating employment, increasing incomes, developing rural economies, ensuring land ownership, and creating a strong middle class. Key areas of focus include reducing the budget deficit, reforming taxes, boosting education and health spending, increasing foreign investment, and developing industries, infrastructure, and tourism through public-private partnerships. The reforms aim to transition Sri Lanka to a knowledge-based, globally competitive economy.
This document discusses stress testing conducted on Prime Bank Limited (PBL) in Bangladesh from 2009-2011. It analyzes various risks, including interest rate risk, exchange rate risk, equity price risk, liquidity risk, and credit risk. Credit risk, specifically the risk of a fall in the forced sale value of mortgaged collateral, posed the highest risk to PBL's capital adequacy ratio during this period. The stress testing assessed the potential impact of shocks to different risk factors and determined that PBL had sufficient capital to absorb minor and moderate shocks, but may have required additional capital to withstand cumulative shocks across multiple risk areas.
This document discusses guidelines for External Commercial Borrowing (ECB) in India according to the Foreign Exchange Management Act (FEMA). It outlines the automatic and approval routes for raising ECB, eligible borrowers, recognized lenders, permitted end uses, and average maturity limits. Key points include ECB being used by Indian corporations and PSUs to access foreign money, automatic route not requiring RBI approval, limits of up to $750M for most corporates and $200M for service sector corporates, and minimum average maturities of 3-5 years depending on the amount borrowed.
The document provides an economic capsule with information on banking and finance, the economy and business, and international news.
Key points include:
- Commercial Bank's 9-month post-tax profit crossed Rs 10 billion with a growth of 15.19% and other strong financial results.
- The bank was ranked 2nd in Business Today's Top 30 companies for the fourth consecutive year.
- The bank launched NFC-enabled premium credit cards for both Visa and Mastercard, a first in Sri Lanka.
- The 2017 budget highlights, implications for the banking sector including new taxes and regulations.
- Sri Lanka's external sector performance showed a 4.1% decline in exports for January to August 2016
The document provides an overview of the National Pension System (NPS) in India. Some key points:
- NPS is a voluntary defined contribution pension system that allows citizens to save for retirement through systematic contributions during their working years.
- It has features like being portable, flexible investment options, and regulated by PFRDA. Subscribers can join from age 18-60 and contributions are made through PRAN cards.
- The document outlines the various sectors, intermediaries, tax benefits, contribution processes, investment options, annuities, grievance redressal system, and how to enroll in NPS.
The document summarizes recent economic and business news from Sri Lanka. It discusses the World Bank and Asian Development Bank lowering Sri Lanka's growth forecasts for 2015 and 2016 due to slowing construction and political transition. It also covers the Central Bank of Sri Lanka cutting policy rates for the first time in 16 months to boost growth, and small car imports from India and China surging amid increased credit availability in Sri Lanka.
The document discusses the impact of the Indian Union Budget 2015-16 on foreign portfolio investors and gold monetization schemes. Some key points:
1) The budget simplifies rules for foreign investment by removing the distinction between foreign institutional investors and foreign direct investment. This will help attract more foreign money.
2) Implementation of general anti-avoidance rules is postponed by two years, providing relief to foreign investors.
3) Foreign investment is allowed in alternative investment funds with tax passed through to investors rather than funds.
4) Clarity is provided on capital gains tax of indirect asset transfers located in India.
5) Gold monetization schemes like sovereign gold bonds and Indian gold coins are
The document provides a summary of economic indicators and news from Sri Lanka and around the world. It discusses topics such as:
- Fitch revising Sri Lanka's outlook to stable due to improving fiscal finances and credible economic policies.
- Sri Lanka's private sector credit growth remaining high at 21.9% in 2016.
- Sri Lanka's trade deficit expanding while tourism earnings and remittances increased.
- Sri Lanka's January tea output falling 15.3% due to adverse weather and policy changes.
- The Colombo port improving its world ranking to 23rd in 2016 due to infrastructure upgrades.
- India's GDP growth slowing slightly in the last quarter of 2016 while China's growth was 6
The document summarizes the hospitality industry in India. It notes that tourism is an important part of the global and Indian economies. The hotel industry in India is experiencing significant growth driven by increasing business and tourist arrivals. However, there is still unmet demand for hotel rooms. The industry faces challenges around managing seasonal demand and optimizing customer and sales channels. Real estate is also a major sector in India and is growing at 30% annually. The sectors of tourism, hospitality, and real estate are interdependent and all experiencing growth.
The document discusses the Indian hospitality industry. It notes that the tourism and hospitality sectors are growing rapidly, driven by factors like a booming economy, low cost airlines, and globalization. The hotel industry is experiencing unprecedented growth, with demand increasing faster than supply. While the industry is growing, it faces challenges around managing seasonal and weekday demand fluctuations and optimizing customer and sales channels. The real estate sector is also large and growing rapidly due to increased demand for housing, offices, and other commercial and industrial infrastructure.
February 2016 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Tourism Industry
Brand Analysis: Apple
Case Study Analysis: Kellogg's
Concept of the month: Boomerang Effect
Key Takeaways:
- Overview of the FSR
- Global Macro Financial Developments
- Economic Growth and Financial Conditions in India
- Performance of Scheduled Commercial Banks
The document provides an economic capsule summarizing recent news in Sri Lanka and internationally. It includes the following key points:
1) Sri Lanka has been ranked as the top island economy for investment potential by an FT publication. However, foreign direct investment remains relatively low at under 1% of GDP.
2) The EU has restored Sri Lanka's access to preferential tariffs under the GSP+ trade scheme, providing an estimated annual tariff benefit of $330 million for key exports like apparel, seafood, and fruits.
3) China's One Belt One Road initiative involves over $1.3 trillion in infrastructure projects across 68 countries to revive trade routes and boost China's influence. Sri Lanka hopes to
The budget document provides an overview of Sri Lanka's budget highlights for 2016, including key figures on revenue, expenditure, deficits, and policy changes across several sectors of the economy. Some of the major changes proposed include voluntary mergers of banks to create larger national banks, incentives for investment in lagging regions and priority industries, tax reductions and concessions to promote the stock market and listed companies, and subsidies or guaranteed pricing for priority agriculture crops. The budget aims to boost revenue, reduce deficits, encourage private sector investment, and promote self-sufficiency in strategic industries.
The document provides a summary of economic and business news from Sri Lanka and around the world in December 2015. Some of the key points included in the summary are:
- Sri Lanka maintained a high ranking in the UN's Human Development Index in 2015. The economy grew 4.8% in the third quarter led by improvements in agriculture and industry. Inflation slowed to 2.8% in December.
- The Central Bank of Sri Lanka increased interest rates to restrain inflation and maintain monetary stability. Sri Lanka also signed $1.6 billion in foreign direct investment deals in 2015.
- Internationally, the US Federal Reserve raised interest rates for the first time in nearly a decade. The Economist forecast
A current account deficit occurs when a country imports more goods, services, and capital than it exports. This makes the country a net debtor to the rest of the world. India has been running a current account deficit for several years due to higher imports than exports. While foreign investment helps fund the deficit, a large and growing deficit could weaken the economy over time by draining reserves and causing currency depreciation if not addressed.
Personal Accident and Health Insurance in Indonesia, Key Trends and Opportuni...ReportsnReports
This document provides a 215-page market analysis report on personal accident and health insurance in Indonesia between 2012-2016. It finds that the market is expected to grow due to rising incomes and healthcare costs in Indonesia. However, fraud and the presence of government health insurance could hamper private insurance growth. The report includes historical data from 2007-2011 and forecasts to 2016 on topics like premiums, claims, market share by category and company profiles. It aims to help understand market trends, opportunities and the competitive landscape in Indonesia's personal accident and health insurance segment.
The document provides an overview of recent economic and business news from around the world. It discusses the weak global economic growth outlook according to the IMF, with risks shifting to emerging markets. It also summarizes that China's economic growth was the slowest in 25 years at 6.9% in 2015. Additionally, it covers topics such as the lifting of economic sanctions on Iran and the falling oil prices to oversupply. Global foreign direct investment reached an eight-year high of $1.7 trillion in 2015 according to UNCTAD.
ECB is basically a loan availed by an Indian entity from a nonresident lender
Most of these loans are provided by foreign commercial banks and other institutions
It refers to commercial loans availed from non-resident lenders with a minimum average maturity of 3 years
An external commercial borrowing (ECB) is an instrument used in India to facilitate Indian companies to raise money outside the country in foreign currency. The government of India permits Indian corporates to raise money via ECB for expansion of existing capacity as well as for fresh investments.
The document provides an economic update from Sri Lanka including:
1) Sri Lanka's GDP grew 6.4% in the first quarter of 2015 led by strong growth in the services sector.
2) Sri Lanka signed articles of agreement to join the new China-led Asian Infrastructure Investment Bank which will fund infrastructure projects across Asia.
3) Sri Lanka's vehicle market saw record new car registrations in May 2015 as lower fuel costs and increased disposable income fueled demand.
The document provides an overview of recent economic, business, banking and international news. It discusses that the ADB trimmed growth forecasts for Asia due to slower growth in the US and China. It also notes that the IMF painted a dim picture for Europe and suggested more monetary stimulus may be needed as growth is projected to average only 1% over the medium term. Additionally, it summarizes that Moody's views Sri Lanka's credit profile as supported by strong growth but constrained by high government debt, though the stable outlook reflects an expectation that ongoing economic challenges will not lead to medium-term deterioration.
The document provides highlights of new policy reforms announced by the Prime Minister of Sri Lanka. The reforms focus on generating employment, increasing incomes, developing rural economies, ensuring land ownership, and creating a strong middle class. Key areas of focus include reducing the budget deficit, reforming taxes, boosting education and health spending, increasing foreign investment, and developing industries, infrastructure, and tourism through public-private partnerships. The reforms aim to transition Sri Lanka to a knowledge-based, globally competitive economy.
This document discusses stress testing conducted on Prime Bank Limited (PBL) in Bangladesh from 2009-2011. It analyzes various risks, including interest rate risk, exchange rate risk, equity price risk, liquidity risk, and credit risk. Credit risk, specifically the risk of a fall in the forced sale value of mortgaged collateral, posed the highest risk to PBL's capital adequacy ratio during this period. The stress testing assessed the potential impact of shocks to different risk factors and determined that PBL had sufficient capital to absorb minor and moderate shocks, but may have required additional capital to withstand cumulative shocks across multiple risk areas.
This document discusses guidelines for External Commercial Borrowing (ECB) in India according to the Foreign Exchange Management Act (FEMA). It outlines the automatic and approval routes for raising ECB, eligible borrowers, recognized lenders, permitted end uses, and average maturity limits. Key points include ECB being used by Indian corporations and PSUs to access foreign money, automatic route not requiring RBI approval, limits of up to $750M for most corporates and $200M for service sector corporates, and minimum average maturities of 3-5 years depending on the amount borrowed.
The document provides an economic capsule with information on banking and finance, the economy and business, and international news.
Key points include:
- Commercial Bank's 9-month post-tax profit crossed Rs 10 billion with a growth of 15.19% and other strong financial results.
- The bank was ranked 2nd in Business Today's Top 30 companies for the fourth consecutive year.
- The bank launched NFC-enabled premium credit cards for both Visa and Mastercard, a first in Sri Lanka.
- The 2017 budget highlights, implications for the banking sector including new taxes and regulations.
- Sri Lanka's external sector performance showed a 4.1% decline in exports for January to August 2016
The document provides an overview of the National Pension System (NPS) in India. Some key points:
- NPS is a voluntary defined contribution pension system that allows citizens to save for retirement through systematic contributions during their working years.
- It has features like being portable, flexible investment options, and regulated by PFRDA. Subscribers can join from age 18-60 and contributions are made through PRAN cards.
- The document outlines the various sectors, intermediaries, tax benefits, contribution processes, investment options, annuities, grievance redressal system, and how to enroll in NPS.
The document summarizes recent economic and business news from Sri Lanka. It discusses the World Bank and Asian Development Bank lowering Sri Lanka's growth forecasts for 2015 and 2016 due to slowing construction and political transition. It also covers the Central Bank of Sri Lanka cutting policy rates for the first time in 16 months to boost growth, and small car imports from India and China surging amid increased credit availability in Sri Lanka.
The document discusses the impact of the Indian Union Budget 2015-16 on foreign portfolio investors and gold monetization schemes. Some key points:
1) The budget simplifies rules for foreign investment by removing the distinction between foreign institutional investors and foreign direct investment. This will help attract more foreign money.
2) Implementation of general anti-avoidance rules is postponed by two years, providing relief to foreign investors.
3) Foreign investment is allowed in alternative investment funds with tax passed through to investors rather than funds.
4) Clarity is provided on capital gains tax of indirect asset transfers located in India.
5) Gold monetization schemes like sovereign gold bonds and Indian gold coins are
The document provides a summary of economic indicators and news from Sri Lanka and around the world. It discusses topics such as:
- Fitch revising Sri Lanka's outlook to stable due to improving fiscal finances and credible economic policies.
- Sri Lanka's private sector credit growth remaining high at 21.9% in 2016.
- Sri Lanka's trade deficit expanding while tourism earnings and remittances increased.
- Sri Lanka's January tea output falling 15.3% due to adverse weather and policy changes.
- The Colombo port improving its world ranking to 23rd in 2016 due to infrastructure upgrades.
- India's GDP growth slowing slightly in the last quarter of 2016 while China's growth was 6
The document summarizes the hospitality industry in India. It notes that tourism is an important part of the global and Indian economies. The hotel industry in India is experiencing significant growth driven by increasing business and tourist arrivals. However, there is still unmet demand for hotel rooms. The industry faces challenges around managing seasonal demand and optimizing customer and sales channels. Real estate is also a major sector in India and is growing at 30% annually. The sectors of tourism, hospitality, and real estate are interdependent and all experiencing growth.
The document discusses the Indian hospitality industry. It notes that the tourism and hospitality sectors are growing rapidly, driven by factors like a booming economy, low cost airlines, and globalization. The hotel industry is experiencing unprecedented growth, with demand increasing faster than supply. While the industry is growing, it faces challenges around managing seasonal and weekday demand fluctuations and optimizing customer and sales channels. The real estate sector is also large and growing rapidly due to increased demand for housing, offices, and other commercial and industrial infrastructure.
February 2016 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Tourism Industry
Brand Analysis: Apple
Case Study Analysis: Kellogg's
Concept of the month: Boomerang Effect
This document discusses the objectives and executive summary of a research report on the Indian hotel industry. The objectives are to analyze industry trends, hotel performances by city and brand, and sales trends of a specific 5-star deluxe hotel in Kolkata. The executive summary outlines that the report will include chapters on the theoretical framework of the industry, a company profile of the hotel being studied, and a data analysis and presentation section evaluating the hotel's performance.
Travel and Tourism continues to be the fastest growing sectors in India. As per the World Travel and Tourism Council (WTTC) India ranks 8th globally in terms of contribution of travel & tourism to GDP. In 2018, the sector generated US$247.3 Bn, accounting for 9.2% of India’s GDP and posted a YoY growth of 6.7%.
India's travel and tourism sector contributes significantly to the country's GDP and employment. It is forecasted to grow at a 6.7% CAGR over the next decade. While foreign tourist arrivals support industry growth, domestic tourism is poised for strong growth as incomes rise. The hospitality industry in India has undergone periods of growth and downturns but has been growing steadily in recent years. Key trends include a shift to asset-light models, growth of online travel agencies, and potential for growth in foreign tourist arrivals as the government promotes tourism. Online hotel aggregators are also disrupting the industry through standardized services across their inventory.
April 2015 Edition of BEACON, A Monthly Newsletter by SIMCON.
Inside this issue:
About Us
Our Team
INDUSTRY ANALYSIS : Tourism and Hospitality Industry
COMPANY ANALYSIS : Thomas Cook India Ltd
BRAND ANALYSIS : Mercedes Benz
Concept of the month
The document provides an economic capsule covering topics in banking/finance, the economy/business, and international news. Some key points:
1) Commercial Bank was named Best Internet Bank in Sri Lanka for the third year and launched a mobile remittance channel between South Korea and Sri Lanka.
2) Sri Lanka's economy grew 3.2% in the first quarter of 2018. The US Federal Reserve raised interest rates which could impact emerging markets and trigger capital outflows from Sri Lanka.
3) Global foreign direct investment flows fell in 2017 and growth prospects for 2018 remain modest due to trade tensions and tax reforms. China and the EU warned that unilateral trade actions risk pushing the world into recession.
Hospitality law governs the hotel, restaurant, and other hospitality industries. It aims to protect both businesses and customers from harm. Key laws relate to food safety, licensing requirements, duties of care, civil rights protections, and taxation. Hotels must obtain various licenses from state and local authorities covering health codes, building safety, liquor service, and more. The global hospitality industry is large and growing, with the Indian market expected to significantly expand in the coming years through increased tourism. Major trends include the rise of budget hotels, growing foreign investment, and strong projected growth in medical tourism.
This report covers New Tourism Policy of Gujarat, 2015. This Policy covers Framework, Incentives, Initiatives, Focus area for Travel, Tourism & Hospitality.
Tourist Inflows in Gujarat has risen from 6.16 million in 2002-03 to 32.7 million in 2014-15 with a CAGR of 13.7%. This Tourism Policy has a objective to position Gujarat as a vibrant tourist destination, make Gujarat one amongst the top five tourist States of India in terms of tourist footfalls and promote employment opportunities for additional two million peoples by 2025.
This report covers New Tourism Policy of Gujarat, 2015. This Policy covers Framework, Incentives, Initiatives, Focus area for Travel, Tourism & Hospitality.
Tourist Inflows in Gujarat has risen from 6.16 million in 2002-03 to 32.7 million in 2014-15 with a CAGR of 13.7%. This Tourism Policy has a objective to position Gujarat as a vibrant tourist destination, make Gujarat one amongst the top five tourist States of India in terms of tourist footfalls and promote employment opportunities for additional two million peoples by 2025.
SECURITIES VALUATION of The Indian Hotel Company LimitedPersonal
The document discusses the hotel industry in India. It provides statistics on the number of hotels and rooms in India categorized by star ratings. It describes the different market segments in the hotel industry including premium and luxury, mid-market, and budget. It also discusses the major players in the industry such as Indian Hotels Company which owns the Taj Hotels, as well as other hotel chains.
Foreign direct investment (FDI) in India has increased significantly in recent years. India was ranked third globally for FDI inflows in 2009 and is expected to remain among the top five destinations. Several reports and surveys show India is viewed as an increasingly attractive investment destination. The Indian budget for 2010-11 aims to simplify FDI regulations and encourage infrastructure development to further improve the investment climate. However, fully realizing FDI potential will require addressing issues such as infrastructure gaps, bureaucratic hurdles, and policy inconsistencies across central and state governments.
The document provides an economic update for Sri Lanka with the following key points:
- Commercial Bank was ranked the third most valuable brand in Sri Lanka and the highest ranked private sector brand, with a brand value of Rs 22.32 billion.
- Commercial Bank partnered with the European Investment Bank to provide financing under a SME Green Energy Credit Line for projects including SMEs, energy efficiency and renewable energy.
- The financial sector consolidation process in Sri Lanka is on track, with nine audit firms selected to evaluate banks and NBFIs and all institutions submitting merger and acquisition proposals by the March 31st deadline.
- Fitch affirmed Sri Lanka's long-term foreign currency issuer default rating at '
Indian hotel industry competetion and benchmarkingAnmol Sharma
The document contains analysis of the Indian hotel industry from all the major aspects. Comparison between 3 major Indian hotel chains show the level of competition and the benchmarks that are set by them to maintain their strategic advantage.
FDI & FEMA : Reinforcing Indian Economy - Hotel & Tourism - Part-13Resurgent India
100% foreign direct investment is permitted in the Indian hotel and tourism sector through the automatic route. This sector includes hotels, restaurants, beach resorts, travel agencies, and other facilities for tourists. FDI has helped boost this sector, with the hospitality industry receiving $3.25 billion in 2012-13, second only to the services sector. Improved infrastructure and campaigns like "Incredible India" have transformed the country into a popular tourism destination and helped the growth of the hotel industry over the last decade. The government continues to permit 100% FDI and provide incentives to attract further foreign investment in this important sector.
The document summarizes the impact of the Indian budget proposals for 2011 on the hotel industry. It notes that while foreign tourism decreased in 2010, growth increased due to major events. The budget allows 100% FDI in hotels and aims to boost infrastructure. However, increasing service taxes on air travel and luxury hotel rooms by 5-25% will likely force hotels to pass the burden on to consumers. While the Taj Hotel chain saw a 10.8% revenue increase, profit declined by 4.6% due to higher costs; a new hotel opening helped increase profits by 29%. Overall, the budget had some negative effects but industry growth is expected if infrastructure targets are met.
- Mongolia has experienced strong economic growth over the past decade led by foreign investment in mining. However, expansionary fiscal and monetary policies have pressured the balance of payments and added to macroeconomic risks.
- The IMF projected growth of 12% in 2013 and 9.5% in 2014 due to new copper and gold mine production. However, non-mining growth has been boosted by unsustainable stimulus measures.
- Mongolia needs to change course by adjusting fiscal policy, unwinding monetary stimulus, and allowing continued exchange rate flexibility in order to reduce vulnerabilities and ensure sustainable growth. This will help address rising inflation, banking sector weaknesses, and fiscal risks from off-budget spending.
This document provides an overview of the hotel and tourism industry in India as background for a study comparing five hotels in Udaipur, India: Radisson Blu, Ramada, Ananta, Trident, and Lalit. It first introduces Udaipur as a popular tourist destination known for its history, culture, and scenic locations. It then outlines the research methodology, describing the objectives, scope, data collection methods, sampling approach, and limitations of the study. Finally, it provides context on the growth of the Indian hotel and tourism industry, key factors driving growth, government initiatives to support the industry, and the future potential of hospitality in India. The document serves as an introduction to the industry and research project
This document outlines the Gujarat Industrial Policy 2020 which provides various incentives and assistance for large industries, thrust sectors, MSMEs, startups, and industrial infrastructure development. Key incentives include capital investment subsidies up to 12% of investment, interest subsidies up to 7-9% of loans, and assistance for quality certifications, technology acquisition, ERP systems, and patent registration. Eligible industries must meet investment thresholds, create jobs, and maintain production levels to qualify for the benefits under this policy.
Gujarat Industrial Policy, 2020 - "Atmanirbhar Gujarat"
Incentive for Relocation of Industries from other countries due to COVID-19 disruptions. Incentive/support for Large, MSME's, Startups, Industrial Infra, R & D and EoDB.
#msmes #Gujarat #industrialdevelopment #startupindia #subsidies #incentives #businessadvisory
Tax weekly 19 july-2020- N Pahilwani and AssociatesNitin Pahilwani
This document provides a summary of updates related to GST and income tax for the week of July 19th, 2020.
Some key updates include:
1) The CBIC has granted deemed approval for pending GST registration applications and extended the due date for filing GSTR-4 returns for financial year 2019-20 to August 31st, 2020.
2) Several advance rulings addressed the classification and taxation of various supplies such as reimbursements, charges by chit companies, rental properties, free supplies, consultancy services and medicines supplied by hospitals.
3) The new Form 26AS will display additional transaction details to facilitate voluntary tax compliance and ease of income tax filing.
4) The
Tax weekly 12 July-2020- N Pahilwani & AssociatesNitin Pahilwani
This document provides a weekly newsletter with updates on GST and income tax. For GST, it summarizes two court cases - one where the government appealed a case allowing Airtel to claim GST refunds, and another related to invoking writ remedy. For income tax, it outlines CBDT actions like facilitating TDS verification for banks, extending refund processing timelines, and clarifying tax benefits for NPS contributions.
Weekly Tax Newsletter 07-06-2020- N Pahilwani & AssociatesNitin Pahilwani
The document discusses self-invoicing under the GST regime. Self-invoicing is required when goods or services are purchased from an unregistered supplier and the liability to pay tax is under reverse charge. Since the unregistered supplier cannot issue a GST invoice, the recipient must issue a self-invoice for documenting the tax liability and availing input tax credit. The key details are:
1. Self-invoicing is required for purchases covered under reverse charge as per Sections 9(3), 9(4) of the CGST Act and Sections 5(3), 5(4) of the IGST Act.
2. The recipient must issue an invoice within 30 days for goods and 60 days for services from
31 May Weekly Newsletter - N Pahilwani & AssociatesNitin Pahilwani
This weekly newsletter contains income tax and GST updates for the week. For income tax, it summarizes changes to ITR forms for AY 2020-21 including new schedules for investments, the launch of instant PAN through Aadhaar-based e-KYC, and notifications regarding annual information statements replacing Form 26AS. For GST, it provides updates on the GST portal including new registration options for insolvency professionals and enabling EVC filing for companies. It also summarizes some judicial rulings related to transfer of goods ownership, tax deduction at source on exempt supplies, and authority of subordinate officers.
CFOs need to take quick actions to stabilize businesses during the COVID-19 downturn. This includes stress testing business plans under various scenarios and communicating with teams. Key actions for CFOs include cashflow management by reducing capital expenditures and reviewing costs in light of lower revenue projections. CFOs should also focus on improving capacity utilization, working capital cycles by reducing collection periods and inventory, and potentially liquidating underperforming assets. Financial reporting remains important for decision making despite pandemic uncertainties.
May Monthly Newsletter- N Pahilwani and AssociatesNitin Pahilwani
1. The document provides updates on tax compliance deadlines in India for May 2020, including extensions granted due to COVID-19. Key dates are extended for income tax returns and refunds, GST returns, TDS/TCS statements, and other compliance requirements.
2. The CBDT has extended various tax payment and compliance deadlines that were falling between March 20 to June 30, 2020 to June 30, 2020. This includes deadlines for income tax returns and refunds, TDS/TCS statements, and other requirements.
3. Due dates for GST returns have also been extended, with the deadline for GSTR-3B returns for April-May 2020 being June 12th/14
IBBI - Scope of Valuation- RV-CA NITIN PAHILWANINitin Pahilwani
The document discusses valuation requirements under the Insolvency and Bankruptcy Code of India. It notes that two registered valuers must be appointed by resolution professionals or liquidators to determine fair value and liquidation value of assets in certain insolvency and bankruptcy proceedings. These include corporate insolvency resolution process, fast track insolvency resolution process, and voluntary liquidation. The valuations provided by the two registered valuers should be independent and in case of significant differences, a third valuer may need to be appointed. Certain related parties cannot be appointed as registered valuers.
Valuation of Startups [with limitation of traditional valuation approach] Nitin Pahilwani
Valuation of Startups [with limitation of traditional valuation approach]
1. Introduction…
2. Factors affecting Start-up Valuation…
3. Limitation of Traditional Valuation Method…
4. Start-up Valuation Method…
a. Venture Capital Method…
b. Berkus Method…
c. Scorecard Method…
d. Risk Factor Simulation Method…
e. First Chicago Method…
5. Closing the Valuation Gap…
June Monthly Newsletter - N PAHILWANI & ASSOCIATESNitin Pahilwani
This document provides a summary of the key updates from the June 2018 Tax Monthly Newsletter, including the following:
1. Important June due dates for income tax, GST, and TDS compliance.
2. Key income tax updates including amendments to DTAA with Kuwait and clarifications on valuation of unquoted equity shares.
3. Important GST updates like the rollout of e-way bills in two additional states, clarifications on taxability of tenancy rights, and waiver of late fees for those unable to file GSTR-3B due to technical issues.
1. The document provides updates on income tax, GST, and TDS rates for the fiscal year 2018-19. It includes due dates for tax filings, income tax return forms, and clarifications on standard deductions and linking of Aadhaar with PAN.
2. GST updates include setting up a grievance redressal mechanism by CBEC to address technical glitches on the GST portal for return filing.
3. The TDS rate chart for fiscal year 2018-19 and an article on e-way bill are also included in the newsletter.
Basic Overview of Goods & Service Tax. this report covers various taxable events, exemption, Input Tax Credit, Place of supply, tax invoice, other voucher and penalty and offence. This is for common user for their first hand use.
The report contain Impact of GST on Hospitality sectors and various provision that are applicable to Goods and Service Tax for Hotels, Restaurant sector in India.
It covers Rates of GST, Provision of place of supply, valuation
This report cover New Industrial Policy of Gujarat, 2015. it cover various Incentive Schemes like Incentives for SMEs, Scheme for Plastic Industry, Innovative Start Ups, Industrial Infrastructure, Labour Generating Industries and Research & Development.
If you establishing business in Gujarat then please have a look at the presentation first.
Vadodara is a major city in Gujarat located on the Vishwamitri River. It has a population of over 1 million and is a center for industry and culture. The city has good transportation connections including an airport and highways. It has many industrial areas and special economic zones that are driving its rapid growth. Several major infrastructure projects are proposed that will further boost Vadodara's economy and development. The city has over 2,200 hotel rooms with around 1,072 branded rooms and more under construction. Hotel occupancy and rates have remained strong in recent years with demand coming from both business and leisure travelers.
This document provides an overview and key facts about the tourism and hospitality industry in India in 2013. Some of the key points summarized are:
- Foreign tourist arrivals grew 2.8% to 66.95 lacs in 2012-2013, with the US, UK, and Bangladesh being the top source countries. Foreign exchange earnings grew 19.1% to Rs. 99,594 crores.
- Domestic tourist visits grew 19.9% to 1036 million in 2012. Andhra Pradesh had the highest visits with 206.8 million.
- Foreign direct investment in the sector reached an all-time high of Rs. 17,777 crores in 2012-2013, a 274% increase over the
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You can easily change/correct a name on your flight ticket under the American Airlines name change policy. The airline provides multiple online and offline modes to place a name change request. To learn more about how to change a name on American Airlines ticket, you can directly approach the airline’s customer support. Moreover, you can connect with a flight expert at +1-866-738-0741 for quick assistance.
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2. 1. Introduction _________________________ 1
2. Hospitality and Tourism ________________________ 2
3. Hotel Classification ________________________ 4
4. Finance
4.1 Inclusion in Priority Sector Lending ______________ 5
4.2 Delinked from Commercial Real Estate ______________ 5
4.3 Foreign Direct Investment _______________ 5
4.4 External Commercial Borrowings _______________ 5
5. Hospitality Development and Promotion Board __________ 7
6. Taxation
6.1 Income Tax ________________________ 8
6.2 Luxury Tax ________________________ 9
6.3 Service Tax ________________________ 10
6.4 Value Added Tax ________________________ 11
7. Foreign Trade Policy
7.1 Served from India Scheme [SFIS] _______________ 12
7.2 Export Promotion Capital Goods Scheme [EPCG] ________ 13
TABLE OF CONTENT
3. P a g e | 1
P. Chidambaram ended his budget speech with Saint Tiruvalluvar’s quote “What
clearly eye discerns as right, with steadfast will and mind unslumbering, that
should man fulfill”. The mool mantra stated in the budget “Higher growth leading
to inclusive and sustainable development”. This year’s budget is more focused on
reducing government deficits, subsidies and expenditure
While India’s recent slowdown is partly rooted in external causes, domestic
causes are also important. Following the slowdown induced by global financial
crisis in 2008-09, the Indian economy responded strongly to fiscal and monetary
stimulus and achieved a growth rate of 8.6 percent and 9.3 percent respectively in
2009-10 and 2010-11. However, with economy exhibiting inflationary tendencies,
the Reserve Bank of India started raising policy rates in March, 2010. High rates as
well as policy constraints adversely impacted investment and in the subsequent
two year viz. 2011-12 and 2012-13, the growth rate slowed to 6.2 percent and 5.0
percent respectively. Nevertheless, despite this slowdown the Compounded
Annual Growth Rate (CAGR) for Gross Domestic Product at factor cost, over the
decade ending 2012-13 is 7.9 percent.
After achieving double digit growth continuously for five years and narrowly
missing double digit in the sixth (between 2005-06 and 2010-11), the growth rate
of the service sector also declined to 8.2 percent in 2011-12 and 6.6 percent in
2012-13 the sector was Trade, Hotels and Restaurants, Transport and
Communication, and its growth further declined in 2012-13.
Along with construction, Tourism is one of the largest sectors of the service
industry In India. It is capable of providing employment to a wide spectrum of job
seekers from the unskilled to the specialized, even in the remote parts of the
country. Compared to other modern sectors, a higher proportion of tourism
benefits (jobs, petty trade opportunities) accrue to women. Hence, growth of the
tourism sector is more inclusive than other sectors.
INTRODUCTION
4. P a g e | 2
International tourist arrivals grew by 4% in 2012 to reach 1.035 billion, according
to the latest UNWTO World Tourism Barometer. International tourist arrivals
surpassed 1 billion for the first time in history in 2012. Emerging Economics
regained the lead with 4.1% over advanced economics 3.6%, with Asia and Pacific
showing the strongest results with increase of over 7%. Growth is expected to
continue in 2013 only slightly below the 2012 level (3% to 4%) and in line with
UNWTO long term forecast. Receipts confirm positive trend in arrivals in India
with receipts from international tourism increase by over 22% up to nine months
ending 2012.
The number of Foreign Tourist Arrivals in India during January-July, 2012
registered a growth of 6.6% over corresponding period of 2011. The number of
FTAs in India during 2010, 2011 and January-July, 2012 were 5.78 million, 6.29
million and 3.76 million respectively. Some of the factors responsible for
International Tourist Arrivals in any county are economic conditions of the source
markets, connectivity, availability of reasonably priced hotel accommodation,
good tourism infrastructure.
12th Five Year Plan
The 12th
Five Year Plan is focused on Infrastructure development by developing
integrated tourism destination and circuits, Identify and development of clusters,
new tourism products, Tourism Park and rural tourism.
Accommodation Units
The existing accommodation units may not be sufficient for the targeted number
of FTAS and DTVs in 2016. The availability of number of rooms in 2010 and
requirement of additional rooms in 2016 for the targeted growth of tourism
during the 12th Five Year Plan are given below:
TOURISM AND HOSPITALITY
5. P a g e | 3
Availability of Hotel
Rooms 2010
Classified 1,28,771
Unclassified 25,83,519
Total 27,12,290
Requirement of
Hotel Rooms 2016
Classified 3,10,523
Unclassified 46,61,807
Total 49,72,330
Additional
Requirement in
2016
Classified 1,81,752
Unclassified 20,78,288
Total 22,60,040
Foreign Tourist Arrivals
The Working Group on Tourism for 12th
five year plan, set up by Planning
Commission, has recommended a target growth in domestic tourism of about
12% p.a. during 12th
Five Year Plan period. The Group also recommended to
increase India’s share of International Tourist arrivals to at least 1% by end of 12th
plan required annual growth of about 12%.
Visa on Arrival Scheme
Government introduced “Tourist Visa-on-Arrival” Scheme for tourists from Eleven
Countries. Countries include New Zealand, Japan, Indonesia, Phillippines,
Singapore, Finland, Cambodia, Vietnam, Luxemberg, Myanmar and Laos. Apart
from this, Union Minister Shri K Chiranjeevi, 1St
March, 2013, has submitted a
proposal to extend Visa on Arrivals to 16 more countries.
“International tourist arrivals surpassed 1 billion for the
first time in history in 2012”- UNWTO
6. P a g e | 4
In July, 2012, Ministry of Tourism has revised the Hotel Classification Guidelines.
Hotel Project must apply for Classification within 3 Months of commencing
operations. The Hotel & Restaurant Approval & Classification Committee (HRACC)
under Ministry of Tourism (MoT) inspects and assesses the hotels based on the
facilities and services offered. Classification approvals will be valid for 5 years.
Local approvals require:
· Municipal Authority
· Concerned Police Authority
· Any other local authority as maybe applicable / required (viz. Pollution
Control Board / Ministry of Environment & Forests etc.)
· Approval / NOC from Airport Authority of India for projects located near
the Airport
HOTEL CLASSIFICATION
7. P a g e | 5
Inclusion in Priority Sector Lending
For the purpose of Harmonising the definition of “Infrastructure Lending”, RBI on
20th
November, 2012 include three star or higher category classified hotels
located outside cities with population of more than 1 million in the Definition of
Infrastructure Lending. This would enable the hotel industry to avail financial
assistance more easily and relatively lower interest rate.
Delinked from Commercial Real Estate (CRE)
The Reserve Bank of India (RBI) has de-linked credit for hotel projects from
Commercial Real Estate (CRE), thereby enabling hotel projects to avail credit at
relaxed norms and reduced interest rates
Foreign Direct Investment
Foreign Investment is freely permitted in almost all sectors. Under Foreign Direct
Investment scheme investment can be made by non-resident in India under two
routes; 1. Automatic Route 2. Approval Route
100% FDI is allowed for Hospitality sector under Automatic route
For Foreign technology agreements, automatic approval is granted if
· Up to 3% of the capital cost of the project is proposed to be paid for
technical and consultancy
· Up to 3% of the net turnover is payable for franchising and
marketing/publicity support fee, and
· Up to 10% of gross operating profit is payable for management fee,
including incentive fee.
External Commercial Borrowing (ECB)
Hospitality Sector is eligible borrower. They can avail External Commercial
Borrowing (ECB) facility up to US $ 200 million during the financial year for setting
up new hotel projects or for meeting foreign currency and/or rupee capital
expenditure. The proceeds should not be used for acquisition of land.
FINANCE
8. P a g e | 6
Indian companies in the hotel sector (with total project cost of INR 250 crore or
more), irrespective of geographical location, avail ECB’s for repayment of Rupee
Loans availed of from the domestic banking system and/or fresh rupee capital
expenditure under automatic route subject to 75 percent of average annual
export earnings realized during the past three financial year or 50 percent of the
highest foreign exchange earnings realized in any of the immediate past three
financial years, whichever is higher.
9. P a g e | 7
Construction of hotels is primarily a private sector activity which is capital
intensive and has a long gestation period. The constraints being faced by the hotel
industry in addition to the high cost and limited availability of land is the
procurement of multiple clearances / approvals which are required from the
Central and State Government agencies for hotel projects. In some cases as many
as 65 or more clearances/approvals are required by hotel projects which vary
from State to State. The often cumbersome process involved in obtaining multiple
clearances for the hotel projects results in:
· Delay in implementation of the project.
· Cost escalation making the project less profitable and often unviable.
· Discourage Promoters for investing in such projects.
· In some instance, the project is stopped midway and restructured for some
other use such as apartments etc.
· Delay in implementation of the project.
To address the constraints being faced by the hotel industry in obtaining multiple
clearances, and to streamline the system for speedy clearances of hotel projects,
the Government has approved the setting up of a ‘Hospitality Development and
Promotion Board (HDPB)’ for hotel projects.
The HDPB will not supersede any statutory clearances required by other
ministries/agencies. However, the regular monitoring and reviewing would
increase their accountability. The review and monitoring would put pressure on
the concerned agencies / departments to adhere to stipulated time schedule. The
board can at any time take up any matters of concern to the highest level of the
Central/State Governments. The clearances to be given by the concerned
agencies would be based on their statutory provisions.
HOSPITALITY DEVELOPMENT AND
PROMOTION BOARD
Now, Indian Hotel Companies can avail ECB for repayment
of Rupee loan
10. P a g e | 8
INCOME TAX
Income tax is chargeable based on Residential Status and Place of accrual or
receipt of income. It also depends on which form of business you are operating.
Income Tax provisions are different for Sole proprietor, Partnership firm, LLP or
Company.
As far as hotels are concern, Income Tax further depend on following
consideration
1. Ownership and Management
2. Hotel Management Agreement
2.1 Lease Out Hotel
2.2 Operating and Management of Hotel
2.3 Franchise Agreement
Tax implications to be considered based on business arrangement made between
parties
Following are incentive available in Income Tax especially for Hospitality Sector.
1. Profit Linked Incentive under section 80ID of the Income Tax
A deduction of an amount equal to 100% of Profit and Gain from for the
first 5 consecutive years for 2, 3 and 4 star category hotels, located in all
UNESCO declared World Heritage sites (Except Mumbai and Delhi) for
hotels constructed and starts functioning from 1st
April, 2008 to 31st
March, 2013.
2. Incentive under section 80IE of Income Tax for undertakings in
North-Eastern States
A deduction of an amount equal to 100% of Profit and Gain for 10
consecutive years for those who undertakes substantial expansion during
the period of April 1, 2007 and March 31, 2017 in any of the North-Eastern
States. Eligible business for this purpose are Hotels (2 Star or above),
adventure and Leisure Sports. Substantial Expansion means increase in
investment by 25 per cent of the book value.
TAXATION
11. P a g e | 9
3. Investment Linked Incentive under Section 35 AD of the Income
Tax
An investment linked deduction Under Section 35 AD of the Income Tax Act
has also been announced in the Union Budget 2010-2011 for establishing
new hotels of 2 star categories and above as classified by the Central
Government, all over India thus allowing 100% deduction in respect of the
whole or any expenditure of capital nature excluding (land, goodwill and
financial instruments) incurred during the year for establishing new hotel.
Luxury Tax
Luxury Tax on Hotel Accommodation in State Matter and they have the power to
levy luxury tax on hotel tariff. Taxes range from 4% to 20% and on printed tariff to
actual tariff. There is exemption limit for each state for tariff below that limit is
exempt from the purview of Luxury Tax. The States/UT like Arunachal Pradesh,
Andaman & Nicobar Islands, Sikkim, Orissa, J&K, Puducherry, Daman & Diu and
Dadra Nagar Haveli are exempt from Luxury Tax. In certain states, these
exemption limits were fixed long time back and have not revised according to
inflationary trends.
Illustrative rates of Luxury Tax
Maharashtra Gujarat
On Actual Tariff On Printed Tariff
Up to 750 Exempt Up to 500 Exempt
750-1200 4.4% 500-2000 4%
1200 and above 10% 2000 and above 6%
12. P a g e | 10
Service Tax
Hotel Accommodations
From July, 2012, Accommodation Service in hotel for declared tariff of more than
Rs.1000/- per day is come under a purview of service tax. Therefore if declared
tariff is less than Rs.1000/- then no service tax is levied. There is an
exemption/abatement of 40% of the gross value provided Input Cenvat Credit is
not availed or service provider has not availed exemption regarding goods and
material sold during the course of providing taxable service (No.12/2003-Service
Tax).
Restaurants
From July, 2012, Service provided in relation to food and beverages by air
conditioning restaurants with a licence to serve alcoholic beverages are taxable in
service tax. Therefore restaurants without licence to server alcoholic beverages
and does have air-conditioning facility are exempt from the purview of service
tax. There is an exemption/abatement of 60% of the gross value provided Input
Cenvat Credit is not availed or service provider has not availed exemption
regarding goods and material sold during the course of providing taxable service
(No.12/2003-Service Tax).
13. P a g e | 11
Budget Amendments
Earlier, Service Tax does not apply to air conditioned restaurants that do not serve
liquor. The distinction is now removed and Government proposes to levy service
tax on all air conditioned restaurants. This Change has mostly cover all restaurants
specifically in Gujarat. Only Terrace restaurant doesn’t come in purview of service
Banquets
Service of Banquet Hall provided by Hotel for any occasion along with catering
services or any other service then Hotels can avail exemption/abatement of 30%
of the gross value.
Sale of Space/Time for Advertisement other than by radio/television is exempt
from Service Tax levy as included in Negative List of Services.
Bundled Service
In case of an event, which is a mix of various overlapping services, the services
which give the most pre-dominant colour would be the category under which the
same should be taxed as per the new section 66F of Finance, 1994 as applicable
from July, 2012. For e.f.
· In case of 2N/3D package for accommodation with meals; the pre-
dominant category would be accommodation even if the customer has
food in the same restaurant like other walk-in customers. Hence, the hotel
needs to charge service tax on 60% value of the total consideration.
Value Added Tax
Just like Luxury Tax, Value Added Tax is also State Matter and they have the
power to levy VAT on Commodities. Different states have different approach and
rate for e.g. VAT on Food Item ranges from 5% to 16.84% in various states.
Similarly VAT on Liquor varies from 13% to 58%.
14. P a g e | 12
Served From India Scheme (SFIS)
This scheme is great boast to Hospitality Industry in providing international
standard quality service to foreign guest. In this scheme, the Service Providers
entitled to Duty Credit Scrip equivalent to 10% of free foreign exchange earned
during current financial year. Foreign Exchange earned through International
Credit Card and other instruments as permitted by RBI shall also be taken into
account for computation of Duty Credit Scrip.
Duty Credit Scrip may be used for import of any capital goods including spares,
office equipment and professional equipment, office furniture and consumables,
which are otherwise freely importable and/or restricted under ITC (HS).
Hotels, Clubs having residential facility of minimum 30 rooms, golf resort and
stand-alone restaurant having catering facilities, Duty Credit Scrip may also be
used for import of consumables including food items and alcoholic beverages.
These entitlement shall be non transferable (except within group company and
managed hotels).
Duty Credit Scrip shall be valid for a period of 18 months and permitted for
payment of excise duty for procurement from domestic source
FOREIGN TRADE POLICY
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Export Promotion Capital Goods (EPCG)
This scheme allows import of capital goods for pre production, production and
post production at 3% Concessional Custom Duty, subject to an export obligation
equivalent to 8 times of duty saved of capital goods under EPCG Scheme, to be
fulfilled in 8 years.
Import of motor cars, SUV’s/all purpose vehicles shall be allowed only to hotels,
travel agents, tour operator operators and companies owning/operating golf
resorts subject to
· Total Foreign Exchange earnings from Hotel, Travel & Tourism in current
and preceding three licensing year is Rs. 1.5 crores
· Duty Saved amount on all EPCG Scheme shall not exceed 50% of average
foreign exchange earnings from Hotel, Travel & Tourism in preceding three
licensing years.
· Vehicles imported shall be so registered that the vehicle is used for tourist
purpose only.
Export Obligation
· Export obligation shall be, over and above, the average level of exports
achieved by applicant in preceding three licensing years for the same and
similar products within the overall export obligation period. Such average
would be the arithmetic mean of export performance in 3 years.
· Up to 50% Export obligation may also be fulfilled by exports of other
good(s) manufactured or service(s) provided by the same firm/company, or
group company/managed hotel which has EPCG Authorisation.
· Shipment under Advance Authorization, DFRC, DFIA, DEPB or Drawback
scheme, or incentive schemes under Chapter 3 of FTP, would also count for
fulfillment of EPCG export obligation.
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· It can also fulfilled by supply ITA-I items to DTA, provided realization is in
free foreign exchange.
· Export shall be physical exports. However, deemed export as specified in
FTP shall also count towards export obligations.
If you have any quires/clarification/feedback/anything then it will great to hear
from you.
Thank you
Nitin Pahilwani
Chartered Accountant
Email: ntpahilwani@yahoo.com / ntpahilwani@gmail.com
http://in.linkedin.com/in/ntpahilwani
The information contained herein is of general nature and is not intended to address the
circumstances of any particular individual or entity. Although I endeavor to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the
date it is received or that will continue to accurate in future. No one should act on such
information without appropriate professional advice after a thorough examination of the
particular situation.