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The latest Economic Survey 2011/12 released by India’s Ministry of Finance areas that GDP growth rate for 2011/12 is estimated at 6.9% (factor costs at 2004-05 prices). The overall Indian economy is likely to grow at 7.6% in 2012-13 and 8.6% in 2013-14. The main reason for a gradual recovery within the next two years is due to the expected decline in overall investment rate. These projections are based on assumptions regarding factors like normal monsoons, stable international prices reasonably, oil prices particularly, and global development somewhere between where it now stands and 0.5% higher. Gross capital development during the third one-fourth of 2011-12 as a percentage of GDP was at 30%, down from 32% a year ago.

Agriculture and allied industries are estimated to attain a rise rate of 2.5% in 2011-12 with food grains production likely to mix 250.42 million tonnes owing to increase in the creation of rice in some carrying on says. The industrial sector poorly has performed, retreating to a 27% share of the GDP.

Industrial development pegged at 4-5 percent, likely to improve as financial recovery resumes. Inflation on WPI was high but demonstrated clear slow down by the year-end. WPI food inflation dropped from 20.2% in February 2010 to at least one 1.6% in January 2012. Calibrated steps initiated to rein-in inflation at the top priority. India remains among the fastest growing economies of the global world.

Fiscal consolidation on the right track – cost savings & capital formation expected to rise. Through … Read the rest

4.36 billion manufactured by Westpac Bank or investment company have been struck down by the High Court as tax avoidance. Westpac has suffered a similar fate to a tax case lost by the Bank of New Zealand last July. The normal template used for these transactions noticed a loan structured as an equity investment in just offshore special purpose vehicles.

The equity investments took the form of redeemable preference shares, structured so that the dividend paid was deductible for the issuer but was received taxes free by Westpac as the shareholder. This experienced the economic aftereffect of having Westpac offset substantial costs against its New Zealand sourced income, with the counterparty who issued the preference stocks able to borrow at significantly below market rates. Within the offer, Westpac paid to the counterparty a GPF charge to guarantee repayment of the choice stocks on redemption.

176 million, or nearly 30% of the taxes benefits claimed by Westpac. The High Court disallowed a deduction for the GPF fees, ruling that that they had no commercial justification. There was expert evidence that the owners of special purpose vehicles used for such organized transactions routinely gave such a guarantee as a matter of course, without charge payable. Westpac’s stated cost of funds led to the remaining 70% of the tax benefits stated. The High Court ruled that the transactions were void for tax purposes as taxes avoidance. The deductions for Westpac’s cost of GPF and money were disallowed. Justice Harrison added that Westpac might … Read the rest