2 India Investment Overview (continued)
2.1 Private Equity Investments in Real Estate Sector (Continued)
It is expected that in the coming years, private equity investors are expected to infuse more money in Indian real estate,
on account of their confidence in long term viability and success of the sector.
PE Investments in Indian Real Estate
Source: CBRE Research
CY2013
CY2014
CY2015
CY2011
Billion
250
200
150
100
50
0
CY2012
5
70
77
165
216
3 India IT/ITeS
7
Industry Overview
3.1 Evolution and Key Hubs
FY04/05-FY11/12:
•
IT firms enhance their service delivery capabilities through a combination of Greenfield initiatives, cross-border
mergers & acquisitions, partnerships with local players, etc.
•
Establishment of captive development centres across the country (viz. Microsoft, IBM, Oracle, Google, etc.)
•
Introduction of the SEZ Act in 2005 – with a view to attract larger foreign investments in India and to accelerate
economic activity, employment, etc. through the establishment of SEZs. Incentives included exemption from excise
duties, exemption from Minimum Alternate Tax (MAT)
8
and Dividend Distribution Tax (DDT)
9
as well as exemption
from the Central Sales Tax
•
Many IT firms align their internal processes and practices to international standards resulting in an increased credibility
of the service offerings
7
IT (Information Technology) – the study, design, development, implementation, support or management of computer-based information
systems, particularly software applications and computer hardware; ITES (Information Technology enabled Services) – a form of outsourced
service which has emerged due to involvement of IT in various fields such as banking and finance, telecommunications, insurance, etc.
8
Minimum Alternate Tax (MAT) (Source: Minimum Alternate Tax India IT Act Section 115JB) was introduced in the direct tax system to make sure
that companies having large profits and declaring substantial dividends to shareholders but who were not contributing to the Government by
way of corporate tax, by taking advantage of the various incentives and exemptions provided in the Income-tax Act, pay a fixed percentage
of book profit as minimum alternate tax (currently at 18.5% (excluding surcharges) of taxable income). This tax was exempt for units operating
in SEZs and the same was introduced for SEZ units/developers from year 2011
9
Dividend distribution tax (DDT) is the tax levied by the Indian Government on companies according to the dividend paid to a company’s
investors (currently at 15% (excluding surcharges) of dividend distributed). This tax was exempt for units operating in SEZs and the same was
introduced for SEZ units/developers from year 2011
A
INDIA Economic and Commercial Real
Estate Overview
.192
ASCENDAS india trust ANNUAL REPORT
2015/2016
