Reining in tax havens

This refers to ‘Are tax havens fading into the sunset?’ (April 18). There has been a spate of news in the recent past on the revised tax rules on the DTAA between India and Mauritius. After four decades of the tax treaty signed between these two countries, India has been making sincere attempts in plugging the loopholes in the system besides strengthening the concept of Tax Residency Certificate (TRC) issued by the Mauritian government.

With the revised provisions coming into force, no entity can claim TRC status without having significant physical presence in the originating country.

Though the change of law could initially impact the overall funds flow between countries under the system, it would ensure no round-tripping is done to bring back the money in a legal form. It appears to be the best way of cleansing the system. It is believed that India would tread cautiously on this, without jeopardising economic and political relationships with the countries involved.

RV Baskaran

Chennai

Monsoon forecast

Apropos the editorial ‘Monsoon cheer’ (April 18), an above-normal monsoon predicted by IMD is a potential boost to the world’s fifth largest economy. Plentiful rains not only bring respite from a scorching summer, but they are also the lifeblood of the country. They drive agriculture output and growth, with farming still being the largest source of employment. Nearly half of the country’s net-sown area doesn’t have access to irrigation and, therefore, depends on rains to grow a number of crops vital for food security. The robust farm output helps to put a lid on food prices, which are above the comfort level now.

N Sadhasiva Reddy

Bengaluru

Smart production

Enterprises are turning to smart digital infrastructures to gain production efficiencies and tap growing market opportunities. However, they must combine key components — unifying voice, video, and data — to protect their employees and operations. Manufacturers seek to build secure ‘smart’ production facilities for their staff and assets and comply with local security regulations. In washing soap production, for instance, if the target is high, soda ash is added to boost production.

Needless to say, need-based production is the order of the day and the production managers need to tune their schedule accordingly.

Jayanthy Subramaniam

Mumbai

CSR efforts delivering

This refers to ‘CSR is carving out an impact’ (April 18). From investing for the sake of formality to making an impact on the underprivileged sections of the society, CSR efforts have really come far in the last one decade.

Having different sectoral heads like JSW Foundation to CSR teams engaging with boards go to show that corporates really mean business and want to bring much-needed change.

A study by Give Grants tells us that we still have a long way to go as only 2 per cent of aspirational districts are receiving the funds. The government should conduct at least one session in a quarter where corporates can share their experiences. Innovative ideas can emerge during brainstorming in such sessions.

Bal Govind

Noida