Students from Manav Rachna University in India began their third week of coursework towards a certificate of Management in Multinational Companies (MMC), through Hiram College’s Global Institute for Management and Leadership.
The students are part of a six-week summer program. The focus of their coursework is IT, operations management, communication technology and management training. In addition to time spent in the classroom, university students are traveling to local and multinational companies throughout Northeast Ohio.
As part of their certificate program, Brian Aurand, accounting instructor, is teaching a course “Financial & Accounts Management in MNCs,” and students participated in the second day of the coursework on July 9, 2013. The focus of the discussion was to compare and contrast how the United States and India approach the following: income and corporate tax, capital gains, the cost of labor, research and development and tax codes.
Aurand began the discussion by describing the differences in income tax: Only 3.5 percent (or 35 million) of the one billion residents of India pay income tax. Conversely, more than 33 percent (or 103 million) of the 313 million United States residents pay income tax. He asked the students why there was such a disparity, and they were quick to answer stating that many people in India are below the income level needed to pay taxes. Additionally, one student pointed out that there is a lack of trust in financial institutions resulting in some Indian residents dealing only in cash exchanges.
Aurand continued the discussion, describing how both U.S. and Indian companies pay corporate taxes, but that many Indian companies have companies located in both the U.S. and India. As a result, much of income made at U.S.-based Indian companies is sent back to stockholders, corporate offices, owners of companies and families of employees. India has a gross domestic product (GDP) of two trillion and of that amount, three percent of the monies come directly from the U.S.-based Indian companies.
Despite these differences in tax code, Aurand and the students found that the similarities outnumbered the differences.
The students from Manav Rachna University will be part of the program until the end of July, and Hiram College is looking forward to providing them with varied educational, cultural and regional experiences during their time on campus.