This was Elon Musk's response to a tweet asking for "updates as to when Tesla will launch in India"

What could be the challenges? One is tax. My views only on that.

A thread 🧵
What has been Tesla's ask so far? They have been pushing for a reduction in import duties for EVs.

2/N

economictimes.indiatimes.com/industry/renew…
Import duties by definition are imposed to give a market advantage to domestic production (in addition to revenue garnering). Term it protectionist if you want. This Govt has more than once stated that they want to give a push for local manufacturing.
#AtmaNirbharBharat

3/N
We have moved away from profit linked tax incentives or tax holidays. No new Profit-linked tax incentives have been announced in the last few years. All new fiscal incentives are production linked. To given an impetus to manufacturing in India.

4/N
Tesla is asking for a reduction of the import duties. That goes against the whole push for local manufacturing by the this Govt. We have a lot of local EV manufacturing now. This is not a commodity or technology that doesnt exist here. Tesla may not. But EVs do.

5/N
So, I personally dont think the Govt will (even should) budge on this. Tesla may not get a reduction of import duties. What they could realistically get is fiscal incentives linked to local production which could offset high import duties. The benefit can be passed on.

6/N
So, in my view Tesla needs to think of manufacturing in India if they want to sell in large numbers and be competitive. That is what Apple did. When they were importing they were struggling. Same with IC luxury cars.

7/N
This push for reduction in import duties on EVs will remain a challenge. If they are pushing for reduction of duties on components, it is a different discussion all together. That will benefit other EVs manufacturers as well.

8/8.
Another important aspect to be added is that the high custom duties are true even in case of IC cars. The issue is the same for say Mercedes. So they way they have dealt with it is to start assembly of cars in India. Mercedes has started assembly of even the AMG cars

9/N
High duty of 100%+ is on CBUs (complete built-up). The duties applicable on semi knocked down (SKD) & completely knocked down (CKD) are much lower. So, starting with assembly of cars is another option that @elonmusk can consider. Which is what most other car markers did.

10/10

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More from @ajayrotti

13 Sep 21
Tax and regulatory issues around crowdfunding specially for charities is being discussed a lot.

Most of it biased discussions. Law has been thrown out of the window and hate for the Govt is being used to conclude! Small thread!

1/N
See what Ketto says! See what Milaap says. Milaap doesnt even talk of the tax treatment for the recipient. They focus on the donor. They say if one donates to an approved organization, you get a deduction! Ketto asks you to consult local advisors.

2/N
Charitable organisations are eligible for tax exemptions only if they are specifically approved. Donations collected by unapproved ogranisations or individuals are TAXABLE (whether through crowdsourcing or otherwise!).

3/N
Read 9 tweets
12 Aug 21
Some of you may have noticed my skepticism on IPOs & valuations. It has nothing to do with particular company of today.

It is probably an effect of having burnt my fingers in IPOs during crazy bulls runs. I was 18 & pursuing my dream to become a CA.

Circa 1998-1999

Thread

1/N
India conducted nuclear tests. Slapped with sanctions. 98 end markets crashed. BJP (ABV as PM) formed the Govt. Markets started a bull run.

Global markets went crazy on tech & the tech stock rally was on steroids even here.

Infosys, Wipro, etc went to 3 digits in no time.

2/N
Anything that had tech in its name was getting sold at crazy valuations. A slew of IPOs hit the market in 1999 and 2000.

Some of names were only to show they were a tech company One of them was Comupdyne Winfosys!!! Yes. Winfosys expanded Winfosystems.

Whatever that meant

3/N
Read 16 tweets
25 Jul 21
There is much talk about income-tax raids being used to silence media.

My two bits... given my experience years of dealing with the tax officers.

Not supporting raids or #DainikBhaskarGroup. Not supporting the Govt. Remember this as you read further. Read my pinned tweet

1/N
While raids may be given a political color, they involve a lot of ground work. Much of it documented internally. Not in public.

Headline: No Raid can happen 'purely' as vendetta. IT officers are compelled to document. IF you are as pure as the driven snow.. Cant be raided.

2/N
First & foremost, income-tax raids cannot be done or decided by any single officer. It needs a team. It has a lot of internal documentation. The most important is what is called a "Satisfaction note".

"Sat note" for those who are familiar.

3/N
Read 11 tweets
30 May 21
Attending a great session on @Clubhouse moderated by @karanbhasin95 & @SandeepParekh got me thinking about the only aspect of #CryptoCurrencies I understand... possible tax issues!! I don't understand anything else on Cryptos.

A thread on the tax issues.

1/N
At the outset, two very important aspects to understand & remember:
1. Despite being called a currency, Cryptos (say #BTC) are an asset or a property (like gold, stocks) for tax purposes
2. Value of BTC or any Crypto is expressed in a fiat currency (mostly US$)

2/N
#BTC is treated as an asset. Whenever the holder uses it to buy anything, that transaction is essentially a transaction of ‘barter’ for taxation. So, the BTC holder is selling #BTC & the receiver is providing goods/services.

3/N
Read 13 tweets

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