Byapaar.com -The Indian Business Blog

The Indian Finance Ministry has recently announced a ten year tax holiday for developers f industrial parks set up during April 1, 2006 to March 9, 2009. The incentive is primarily aimed at providing a boost to India’s industrial infrastructure. The Industrial Development Scheme 2008 notified by the Central Board of Direct Taxes (CBDT) held that the industrial park developers would be eligible for 100 percent tax deduction which would be provided for ten out of fifteen consecutive assessment years after the commencement of operation of such units. Under the scheme, an industrial park should have at least 30 units. To avail of the tax benefit, the industrial park would have to be owned by a single undertaking. The area allocated or to be allocated to industrial units would have to be at least 90 percent of the allocated area. Ministry sources clarified that such industrial parks developed operated or maintained during 2006-07 would have 2007-08 as tax assessment year.

India is emerging as a favorite investment destination for top Japanese companies as large conglomerates from the far-eastern country begin to diversify away from neighboring China, their earlier hotspot. While China still maintains the top position as an investment destination, a lesser proportion of companies (68 percent) China as a promising country. China has seen a decline for four straight years since its peak in 200. India ranked second among Japanese companies as a promising country for investment. By industry, automobile-related companies saw a particularly positive stance. In fact India ranked highest among Japanese companies as promising country for doing business in the long term, ahead of China for the first time since the survey has been conducted for the last 18 years