Why should there be separate clauses for Foreign investors? All the monetary benefit laws or taxation laws applicable to citizens of "host state" should equally apply to enterprise or foreign investors or FII. Things will automatically fall in place with this single line clause.
Special clauses do provide unduly benefits as foreign investor than native citizens. What is the need for this?

The treaty should be based on the premise that taxes should be paid in the country where profits are made( for any activity undertaken in the country) at the tax rates prevailing in that particular country. The purpose should be to ensure a level playing field for both domestic and foreign players.

1: The MNC's or Global companies investing in India should not be allowed to take away 100% profit back to overseas HQ. They should continue to invest min 50% of profit earned every year in India to sustain growth locally and take away only 50% profit in cash/transfer.
2: MNC's creating internal BU's, supplying to associated parties (Breaking ITP rules indiretcly) at cost or small profit. Export sales merged into total turnover thereby reducing total profit-Tax evasion. Govt must be strict.

The draft seems very silent on intellectual property rights (IPR) protection. India being the favoured partner with many corporates and organizations, its important that investments towards IP creations are appropriately managed and safeguarded. The trade-off between competitive laws and IPR is important and hence needs to be particularly emphasized.

The definition of investor is problematic:

1.9 “Investor” means:
(i) A legal entity constituted, organized and operated in compliance with the Law of the Home State, owned or controlled by a Natural Person or a legal entity of the of the
Home State and conducting real and substantial business operations in the Home State...

As regards corporations being legal entities on their own:

An extract from chapter IV of the book by David C. Korten:

https://www.facebook.com/groups/2072643826

As per DTAA ( double Taxation Avoidance Treaty) with USA, interest income earned by a US citizen in India is taxable in USA, not in India. Still, TDS is deducted by banks on the NRO accounts of USA citizens. Can someone clarify- Why a non taxable income attracts TDS?

Set up every business controlling bodies who keep tab on quality and profits of business houses to maintain competitiveness. This we need to do domestically also to safeguard consumers. India is a country where people come to overturn the fortunes in days and end up blotting themselves and country also in absence of any price and quality controlling bodies to obviate such situations. Indian business conditions are very hostile, risky and law is too slow. Police is heavily corrupt.

Treaties cannot serve unless our house is not in order. Digitalize India quickly with filing of police complaints and all regulations on line in the name of department and no individual name appearance to avoid any interaction between individuals and any shortcoming/queries should be marked online. Make everything time bound on both ends with embassies tab. Equip government employments with laptops, mobile machinery so that they too devote extra times to meet deadlines. No retrospective taxes.

1. Decides sector 2. Available market in India & abroad 3. Skill available 4. Formalities for starting in India & abroad 5. Investment 6. Any effect of process on envirment / polution

#IndianBilateralInvestmentTreaty, #MinistryofFinance, #DraftBilateralInvestmentTreaty, #MyGov
Sir, We welcome the Govt. of India policy to revisit the text of investment treaties to keep the sovereign right to regulate in public interest. Excessive right to investors is threat to democracy, public policies and public money. Domestic courts should be exclusively used to settle disputes with foreign investors. Please consider the attached suggestion.