Latest news with #NikunjOhri
Yahoo
28-03-2025
- Business
- Yahoo
India pushes to ease international payments through homegrown network to rival Visa, Mastercard
By Jaspreet Kalra and Nikunj Ohri MUMBAI/NEW DELHI (Reuters) - India is asking the Financial Action Task Force (FATF), a global money-laundering watchdog, to reduce compliance requirements for cross-border payments made through its homegrown system, several sources familiar with the discussions said. Launched in 2016, the Unified Payment Interface (UPI) accounted for 83% of India's digital payments volume in 2024, up from 34% in 2019, and dominates the domestic retail payments sector. The government now wants to increase the use of its own payments network by Indians travelling abroad, which could potentially tap into a growing market, and make the global cross-border payments market more competitive. But its expansion for cross-border payments has been hampered by compliance requirements on smaller payments, to which payments made via networks such as Visa, Mastercard, and SWIFT are not subject, the sources said. Government officials raised the issue at an FATF conference in Mumbai this week, two of the sources said, declining to be named because they are not authorised to speak to media. The FATF, India's central bank and the federal finance ministry did not immediately respond to emails seeking comment. Visa and Mastercard did not respond to requests for comment. A final decision would depend on achieving a consensus among FATF member countries after the public consultation period, a third source familiar with the discussions said. A public consultation on the FATF's "travel rule", which requires financial institutions to collect, hold, and transmit information about the sender and receiver of cross-border payments, is open until April 18. In their current form, global anti-money laundering rules tend to favour both card networks and payments facilitated by the SWIFT payment system, the three sources said. Central Bank Governor Sanjay Malhotra told the FATF gathering that "it would be desirable to make the (FATF's) travel rule technology-neutral," without specific mention of UPI. India has so far inked deals with seven nations, including France and Singapore, which allow merchants to accept payments via the UPI. ($1 = 85.6175 Indian rupees) Sign in to access your portfolio
Zawya
10-03-2025
- Business
- Zawya
India seeks parliament's nod to additionally spend $5.9bln in 2024/25
The Indian government has sought parliament's approval to additionally spend 514.63 billion rupees ($5.90 billion) on a net basis for the current financial year ending March 31, according to a statement released on Monday. ($1 = 87.2500 Indian rupees) (Reporting by Nikunj Ohri; Editing by Jacqueline Wong)
Zawya
07-02-2025
- Automotive
- Zawya
Kia contests $14mln India tax demand for wrongly using trade treaty exemptions
Kia on Friday said it is contesting an Indian tax demand of $14 million for wrongly using free trade agreements to claim lower tariffs on some electronic car part imports, the latest tax tussle between the South Korean automaker and New Delhi. Tax investigations in India can drag on for years and are often a sore point for foreign companies. Kia is separately fighting a $155 million tax evasion notice, and Volkswagen has sued New Delhi against a record $1.4 billion demand it calls "impossibly enormous." Kia commented on Friday for the first time on the Indian authorities' 2023 confidential notice, which is not public but was reviewed by Reuters. It alleges that Kia imported some electronic parts but "wrongly" claimed benefits of lower duties which did not apply to those components under India's free trade agreements with Korea and ASEAN nations. The "issue regarding misclassification is an interpretational issue", Kia said in a statement, adding that the company has submitted a detailed response to the tax authorities who are still reviewing the matter. Such issues "are usually sorted out at the regulatory authorities' level only and some may have to be taken to a higher level depending on the severity of interpretation," Kia India said in an emailed response to Reuters. Reuters also reported this week that India also accuses Kia separately of evading $155 million in taxes by paying lower duties in importing most of the components for its Carnival minivan, circumventing higher taxes payable when imports come in one shipment as a completely knocked down unit. Kia has denied the allegations and is contesting the demand. The 101-page, July 2023 tax notice alleges the company used incorrect tax declarations for imports such as engine and door control units between 2019 and 2022. The notice puts the amount of alleged duty evaded at 1.22 billion rupees ($14 million) and adds that Kia India has already deposited 322 million rupees ($4 million) with the authorities "under protest" while the matter is heard. Kia's India annual sales stood at $4.45 billion in fiscal 2022/23, its highest ever, but net profit was $243 million for the same period. (Reporting by Nikunj Ohri, Editing by Louise Heavens)
Yahoo
05-02-2025
- Automotive
- Yahoo
Exclusive-India accuses Kia of evading taxes of $155 million in VW-like dispute
By Nikunj Ohri, Aditya Kalra and Aditi Shah NEW DELHI (Reuters) - India has accused South Korea's Kia of evading taxes of $155 million by misclassifying component imports but the carmaker has denied wrongdoing, the latest fight by a foreign automaker with New Delhi over tariffs, according to a document and two sources. Kia competes with Hyundai and Maruti Suzuki in the world's third-largest auto market, where it has a share of 6% of roughly 4 million units a year, and its Kia Seltos and Sonet SUVs are among the top sellers. Foreign companies in India face headaches from high taxes and long-drawn-out investigations. For example, Tesla has publicly complained about high taxes on imported EVs and Volkswagen last week sued over a demand for a record $1.4 billion in back taxes that it called "impossibly enormous". Tax officers sent a confidential notice to Kia's Indian unit in April 2024, flagging alleged tax evasion of 13.5 billion rupees, according to a government notice Reuters is reporting for the first time. The offence centred on incorrect declaration of imports of components for the assembly of the carmaker's luxury Carnival minivan, the notice showed. In a statement to Reuters, Kia India said it made "a detailed response, supported by comprehensive evidence and documentation to substantiate" its stand and the authorities were still reviewing the matter. Kia India is committed to complying with all regulations and has "consistently cooperated with" authorities, it added. India's finance ministry and customs officials did not respond to Reuters queries. In its 432-page notice, the government said tax authorities found Kia's Carnival "car model was being imported in parts or components in separate lots" via different ports, with the "intent to discharge lesser customs duty". Kia devised the strategy to ensure the imports "could not (be) detected by customs," it added in the notice, issued by a customs commissioner in the southern city of Chennai. Two sources said Kia's case was similar to that of Volkswagen, accused of evading a higher tax of 30% to 35% applicable on parts imported in "completely knocked down" or CKD form in a single shipment, instead shipping separate parts over days, making them eligible for a tax rate of just 10% to 15%. During the investigation, Kia's website showed the Carnival model sold in India as being in "CKD" form, with retail sales of 9,887 units between 2020 and 2022, the tax notice said. The Volkswagen investigation spanned 14 car models from the Skoda Kodiaq to the Audi A3 and the Volkswagen Tiguan. In contrast, Kia's case concerns only the Carnival model, a seven-seater priced around $73,500, which is among its most expensive cars in India. KIA COULD FACE $310 MLN PAYOUT Indian tax rules could require Kia to pay up to $310 million if it loses the dispute, or roughly double the amount evaded, due to penalty and interest. The latest available corporate filings in India show Kia's domestic annual sales of $4.45 billion in fiscal 2022/23 were its highest ever, up 53% on the year, for net profit of $243 million. Last week, India slashed import duties on fully-built high-end motorcycles to 30%, in a move widely seen as looking to placate U.S. President Donald Trump, who has in the past called India a "tariff king". But fully-assembled imported cars still attract a levy of more than 100%. Kia has deposited 2.78 billion rupees ($32 million) "under protest" as it continues to fight the Indian tax notice, which is still proceeding, said a government source who declined to be named as the matter is private. In 2022, authorities searched Kia offices and a factory in the southern state of Andhra Pradesh and took statements from India executives, some of whom the document identifies as Chief Procurement Officer Lee Sang Hwa, and Chief Finance Officer Kiho Yoo. During the investigation, Kia executives "changed their stance and have made efforts to mislead," the tax notice stated, referring to statements on imports, manufacturing and taxation. Kia was accused of importing more than 90% of the parts for Carnival, constituting a car in CKD form, which attracts higher tax, it added. India's head of indirect taxes, Sanjay Kumar Agarwal, told Reuters the law was clear and some automakers were flouting it by not paying applicable CKD duties. "If they are on the wrong side, then the department will have to issue a notice," he said in an interview on Tuesday. Sign in to access your portfolio
Yahoo
05-02-2025
- Business
- Yahoo
India's finance ministry asks employees to avoid AI tools like ChatGPT, DeepSeek
By Sarita Chaganti Singh and Nikunj Ohri NEW DELHI (Reuters) - India's finance ministry has asked its employees to avoid using AI tools including ChatGPT and DeepSeek for official purposes, citing risks posed to confidentiality of government documents and data, an internal department advisory showed. Countries like Australia and Italy have placed similar restrictions on the use of DeepSeek, citing data security risks. Reports of the advisory surfaced on social media on Tuesday, ahead of a scheduled visit to India by OpenAI chief Sam Altman on Wednesday, when he is also due to meet the IT minister. See for yourself — The Yodel is the go-to source for daily news, entertainment and feel-good stories. By signing up, you agree to our Terms and Privacy Policy. "It has been determined that AI tools and AI apps (such as ChatGPT, DeepSeek etc.) in the office computers and devices pose risks for confidentiality of (government) data and documents," said the advisory by the Indian finance ministry dated Jan. 29. Representatives for India's finance ministry, ChatGPT-parent OpenAI and DeepSeek did not immediately respond to requests for comment. Three finance ministry officials said the note was genuine and the note was issued internally this week. Reuters could not immediately confirm whether similar directives have been issued for other Indian ministries. OpenAI is facing heat in India due to a high-profile copyright infringement battle with the country's top media houses, and has said in court filings that it does not have its servers in the country and Indian courts should not hear the matter.
