P-Note holders not liable to pay tax in India: Pranab

Setting at rest the uncertainty about overseas investments, Finance Minister Pranab Mukherjee on Friday said that persons investing in stock markets through participatory notes (P-Notes) will not have to pay taxes in India, an assurance that pushed up the markets.

“Indian tax authority would not go beyond financial investor (FIIs) to check the details about the P-Note holders. Accordingly, a question of liability for tax in India of the P-Note holder would not arise. Necessary clarification will be issued”, he told reporters.

Participatory Notes (P-Notes) are instruments that allow foreign institutional investors (FIIs), which are not registered with market regulator SEBI, to invest in the Indian equity market.

Green Tribunal suspends environmental clearance to Posco

The environment clearance granted to Posco’s steel project in Orissa in January 2011 will remain suspended till the Environment Ministry reviews it afresh, the National Green Tribunal held on Friday.

“The environment clearance granted on January 31, 2011 to the project shall remain suspended till such review and appraisal is done by the Ministry,” a Bench of Tribunal comprising Justice C.V. Ramulu and Devendra Kumar Agarwal held.

The Tribunal pointed out that memorandum of understanding between the Orissa government and Posco states that the project is for production of 12 million tonnes of steel per annum (MTPA) but the environment impact assessment (EIA) report has been prepared only for 4 MTPA steel production in the first phase.

It said the MoEF should take “policy decision” that in projects of such magnitude the EIA should be done for the complete project. “The EIA should assess it for the full capacity right from the beginning,” it said.

The Tribunal directed the MoEF to review the clearance afresh and attach “specific conditions”, which Posco would have to follow in a defined timeline.