Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: form 3cd :: cpt :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: TDS :: VAT RATES :: list of goods taxed at 4% :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: due date for vat payment
 
 
Direct Tax »
 Income Tax department rejects black money disclosures of over Rs 2 lakh crore
 CBDT urges people to protect bank accounts from 'unscrupulous elements'
 No change in gold seizure norms in proposed I-T Law amendments
 Direct tax collection will get a long-term boost, Franklin Templeton says
 I-T Act amendments upset calculations of cash hoarders
 Claim tax benefit on costs incurred to evict tenants
 The Integrated Goods And Services Tax Act, 2016
 Here’s what Income Tax Department did leading up to demonetisation
 I-T department asks IDS declarants to pay tax by November 30
 Cash trove tax drive dilemma
  CBDT halves Income Tax refunds issue timeline to 15 days for this fiscal

New direct taxes code likely to hit PFC ops
October, 29th 2009

The new direct taxes code (DTC) is expected to hit hard the state-run Power Finance Corporation (PFC) whose cumulative sanctions crossed Rs 2 lakh crore and disbursements Rs 1 lakh crore in the fast changing Indian power sector.

PFC in its presentation to the Centre argued that provision of minimum alternative tax (MAT), withdrawal of tax exemption under special reserve, under reserve for bad debts and introduction of long-term capital gains tax would severely impact its operations and the power sector in general. Besides, over-riding provisions of double taxation treaty may increase withholding tax on interest payments on ECBs.

PFC official told FE, Implication of MAT on power projects will be quite severe as it may affect cashflow of the borrowers and consequently loan servicing ability of borrowers. The centre also needs to reconsider provisions of restricting benefit of tax exemption for infrastructure companies under section 80 (IA) and shifting the benefit of depreciation on financial lease assets from lessor to lessee."

The official informed that PFC has already taken up the matter with the power ministry and hoped that the centre may review these provisions including MAT and over riding provision of double taxation treaty agreements.

PFC, which had not gone for foreign currency loan for last two years due to economic downturn and other adverse factors, plans to raise $300 million through bond issue or syndicated loans. PFC fears that the over riding provisions of double taxation treaty may increase withholding tax on interest payments on its proposed foreign currency loan.

Mumbai-based analyst said PFC's concern is to be seen in context with the requirement of funds of over Rs 11 lakh crore in 12th plan for capacity addition of over 80,000 mw and the related transmission and distribution projects.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Achievements

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions