Hyderabad, March, 2005: Private funding of Research & Development (R&D) is unknown in India.  The so-called development banks do not believe in funding of R & D. Normal commercial banks keep themselves away from funding hi-tech projects lamented  Padma Bhushan awardee. Mr. Vara Prasad Reddy, Managing Director of Shantha Biotechnics Limited while delivering his keynote address immediately after inaugurating  International Tax Conference organised by Hyderabad Sub Chapter of International Fiscal Association here in city recently. He was the Chief Guest at the inauguration of the conference attended by well over 130 tax consultants, financial professionals,lawyers, C.As, Company Secretaries, International Tax experts and others. 

Speaking further Mr. Reddy said neither private sector nor public sector favours anything ‘Indian’. ‘Indian Made’ has no respect.  Speaking on the problems he faced when setting up his company, he said it was very  difficult to get his project funded  which had social benefit.  No financial professional nor any institution ever gave due weightage to the project which had a social benefit.  There is no value for the same even today.  All they are interested in are figures.  Now the time has come for funding agencies to look beyond mere figures,he said. Balance sheet should go beyond figures.    Let quantity and social benefit frame the rules, he told the participating delegates at the One Day International Tax Conference held at Hotel Grand Kakatiya today.  In India the healthcare manufacturing companies need to pay customs duty ranging from 38% to 80% on their raw material,while imported vaccines escape from such duty, he expressed his anguish.  

The inaugural function was graced by Mr. N.D.Raghavan, Vice President of Income Tax Appellate Tribunal; its members Mr. Manmohan and Mr. Sudhakar Reddy; Mr. P.K. Sinha, Chief Commissioner of Income Tax; Mr. K.V. Chaudhury, Commissioner of Income Tax and others.  The conference which was fourth in the row ever since the Hyderabad Sub Chapter of International Fiscal Association(IFA) was started on March 12, 2004 was addressed by many financial luminaries.  These include Mr. Porus Kaka, a practicing lawyer from Mumbai who studied at Harvard Law School in the U.S. He spoke on “Recent Judicial Rulings(including AARs) on Non-resident taxation”.Mr. Kaka earlier appointed as India’s representative on the Permanent Scientific Committee of the IFA  as well as Expert Witness on Indian Tax Law in London in International Arbritration. 

Other resourceful speakers at the Seminar include Mr.P.D. Desai of P.D. Desai & Co. Mumbai, Mr. Sampath Raghunathan of RSM & Co. Bangalore and Mr. Rahul Garg of M/S PriceWaterHouseCoopers, Delhi. The subjects dealt by them include “Permanent establishment under the Treaty Law”, “Taxation of Expatriates Inbound and Outbound” and “Double Non Taxation”.

Earlier Mr. P.V.S.S. Prasad, Chairman of IFA Hyderabad welcomed that gathering and highlighted the objective of the conference which was organised in the backdrop of increasing inbound and outbound investments coupled with technical collaborations.   Conferences like these help fiscal professionals to update latest trends and practices in the ever changing international taxation. 

Giving details about their organisation Mr. V.Jawahar, Secretary of the Chapter said  IFA is a leading non-governmental, international  organisation dealing in fiscal matters.  It is a focused research organisation. Founded in 1938 with an objective to study and further the advancements of international fiscal laws. It has over 10,000 members in over 90 countries with 45 National Branches including India Branch. It’s members comprise of tax-payers, their advisers, lawyers, CAs, Company Secretaries, Cost & Management Accountants, government officials and university professors.  The IFA India Branch which has been existing for the past 23 years includes as its members the Central Board of Direct Taxes, The National Institute of Public Finance and Policy and Reserve Bank of India, Authority for Advance Ruling,Department of Legal Affairs(Ministry of Law Justice and Company Affairs), The Supreme Court and High Courts to name a few . 
 

Reachout's News Bureau
March' 2005