India-USA Current Affairs - 2019

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US Navy’s Chief of Naval Operations visits India

Chief of Naval Operations of US Navy, Admiral John Michael Richardson is on a three day official tour to India. The tour is scheduled from 12 to 14 May 2019 and during his visit he will meet Indian Navy’s Chief of Naval Staff Admiral Sunil Lanba in New Delhi.

Key Highlights

  • Purpose: Admiral John Richardson visit to India is amid rising Chinese influence in Indo-Pacific region. This is part of US strategy of grouping together with like-minded countries like India, South Korea, Australia and Japan to make sure that each Indo-Pacific nation can protect its sovereignty from coercion. It refers to coercive activities undertaken by China in South China Sea (SCS) which have become a flashpoint for US-China relations in Asia.
  • Aim: The visit by US Navy Chief is intended to consolidate bilateral naval relations between India and USA and as well as explore new avenues for naval cooperation between two nations.
  • Discussions: Major issues to be discussed during visit include information exchange, capacity building, operations and exercises, capability enhancement and training interactions.
  • Significance: The visit emphasizes the importance of information sharing and exchange between two defence partners. This will further strengthen strategic partnership between the Indian Navy and US Navy.

India-US Defence Relation

  • India-US ties has seen a significant growth in recent years.
  • In 2016, USA accorded India a Major Defence Partner status.
  • In September 2018 the inaugural Ministerial 2+2 Dialogue conducted between two nations (India and US), facilitated new avenues for defence cooperation among them.
  • Indian Navy and US Navy interact regularly at various bilateral and multilateral forums. They also participate in several maritime exercises like MALABAR and RIMPAC.
  • Other than Defence Exercise many Regular Subject Matter Expert exchange also takes place between both navies to establish interoperability in various fields.

Month: Categories: Defence & Security

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India, US to Sign Pact for Exchange of Country-By-Country Reports

Both India and the US will sign an agreement to facilitate the exchange of country-by-country (CbC) reports filed by the ultimate parent corporations based in either of the countries.

Country-By-Country Reports

Base Erosion and Profit Shifting (BEPS) has been at the focus of OECD to address Tax evasion. Multinational companies were accused of gaming tax systems to maximise profits, while potentially depriving tax authorities of revenue.

To address this issue one of the measures adopted by OECD is Country-By-Country Reports. The Country-By-Country Reports requires multinational companies to provide information about:

  • The name of each country where it operates.
  • The names of all its subsidiaries and affiliates in these countries.
  • The performance of each subsidiary and affiliate, without exception.
  • The tax charge in its accounts of each subsidiary and affiliate in each country.
  • Details of the cost and net book value of its fixed assets in each country.
  • Details of its gross and net assets for each country.

Section 286 of the Income-tax Act, 1961 requires Indian subsidiaries of multinational companies to provide details of key financial statements from other jurisdictions where they operate. This provides the I-T Department with a better operational view of such companies, primarily with regards to revenue and income tax paid.

The proposed agreement will enable both India and the US to exchange CbC Reports filed by the ultimate parent entities of International Groups in the respective jurisdictions. As a result, Indian constituent entities of international groups headquartered in the USA, who have already filed CbC Reports in the USA, would not be required to do local filing of the CbC Reports of their international groups in India and vice versa.

Month: Categories: Business, Economy & BankingUPSC

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