Since, 1991, India has concentrated on development, liberalization process of law and procedure for doing business in India, Scrapping of Foreign Exchange Regulation Act, introduction of Foreign Exchange Management Act, Information Technology Act, Right to Information Act, Money Laundering Act, Limited Liability Partnership Act, Value Added Tax (VAT), uniform Stamp Act, are steps in the right direction, to attract foreign investment. Dividend income is completely exempt. Capital gains in respect of quoted shares of company which are held for more than one year are also exempt from income-tax. Corporate Taxation rate is only 35% which is considered as one of the lowest in the developing countries. Political stability has added advantages for doing business in India. Whichever the Government comes in to power, the liberalization process and foreign policy remain unaffected. India is the only country which has set up “National Knowledge Commission”. We have multi cultural, multi language multi religious background which is truly secular.
 

India has one of the finest judicial systems. India has a matured tax system and tax administration. The cost of tax collection in India is only 0.67%, which can be considered as one of the lowest in the world. Non Residents can approach the Authority for Advance Rulings for Direct Taxes, as well as Indirect Taxes for determination by the Authority in relation to a transaction which has been undertaken or a proposed to be undertaken by a non resident applicant or a determination by the Authority in relation to a transaction which has been undertaken or proposed to be undertaken by a resident applicant with a non resident.
 

India is recognized as emerging leader in the legal process outsourcing industry. This is mainly because of talented English speaking lawyers, Chartered Accountants, computer education, development of Technology and our legal system which follows the British Tradition. The Apex court, High Courts, quasi-judicial Authorities, the Tribunals, Tax administration, the proceedings are conducted and orders are passed in English. The legal opinions and the Arbitration proceedings are in English language.
 

At present the leadership of India is with great visionaries, His Excellency Dr A.P.J Abdul Kalam as President of India, Dr. Manmohan Singh as Prime Minister of India, Hon’ble Mr. Justice Balakrishnan as Chief Justice of India and Mr. P. Chidambaram, a great lawyer who studied at Harward University of USA as a Hon’ble Finance Minister of India. One may not find anywhere in the world such a well read and great visionaries are leading the nation. India is shining and it is the right opportunity to visit and share partnership in the progress of the country, which will benefit USA as well as India.
 

Considering the commercial and legal advantages, we are of the well considered view that three is a great scope and opportunity for India-USA legal and business partnership. On the occasion of 2nd International Study Tour to USA, we have released our publication titled “INDIA – USA - BUSINESS AND LEGAL PARTNERSHIP – STRATEGIES” at Washington and New York. An attempt has been made in the said publication to highlight the legal requirements of doing business in India.
 

I had the privilege of associating with two International study tours organized by the All India Federation of Tax Practitioners. During an interaction with the legal and accountancy fraternity of USA, it is observed that the people at large of USA consider the India as one of the emerging super powers of Asian continent. It is heartening to note that President of USA George W. Bush has highest regard and respect to Indian democracy and specially to our Hon’ble Prime Minister Dr. Manmohan Singh. In the course of interaction with advisors to Government of USA various Merchant Bankers, and Attorneys, we have been informed that huge investments are likely to invested in India there are many cross border transactions are likely to be held in the years to come. We find there is a very positive approach for investing in India and this trend will continue for at least for another two decades.
 

The main difference in respect of legal practice in India and USA, is in India legal practitioners cannot advertise whereas in USA we found huge advertisement hoardings of law firms. In India profession is still considered as service whereas in USA it is only business. We had an opportunity to visit the Supreme Court of USA. We have been told less then hundred matters are pending for hearing and disposal. We have been told only half an hour is given to the petitioner and another half an hour to the respondent. The entire hearing will be over with in one hour. Is it possible in our country to conclude the hearing within one hour? It is a thought for debate?
 

When the investment from USA increases, USA attorneys entrepreneurs do require correct advice from the tax practitioners of India. Similarly when Indian entrepreneurs makes huge investments at USA they do require correct advice from the USA lawyers. The question to be asked by ourselves is, are we in a position to render legal services which the USA lawyers desire from us. My answer will be no. As a tax practitioners we are only dealing with taxation aspect of the matter, however the investor from USA requires the advice in respect of FEMA, SEBI regulation etc. Most of our practices are individual practice and we don’t have big set up hence it may not be possible to render the required service. To render services to big clients we have to become big. Many chartered accountants firms have restructured their practice and became big to render all services, under one roof. We have very few law firms and chartered accountancy firms which are big and capable of handling all aspects of capital markets .
 

We have around 7,50,000 Lawyers and around 1,20,000 Chartered Accountants and good number of other professionals. It is the time to debate and join hands with likeminded people so that your firm can also be capable of giving advice to multinationals and big assessees. There could be an arrangements and affiliation between Lawyers and Chartered Accountants. According to me profession of law and accountancy are complimentary to each other and if they join together it will immensely benefit to both the profession.