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: TDS :: empanelment :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: TAX RATES - GOODS TAXABLE @ 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ACCOUNTING STANDARDS :: VAT Audit :: due date for vat payment :: articles on VAT and GST in India :: VAT RATES :: cpt
 
 
« Direct Tax »
 6 tax tasks you should finish by March 31
 CBDT to waive interest if tax demand paid in retro cases
 CBDT to waive interest if tax paid in retrospective cases
 New move to settle retrospective tax cases, CBDT offers interest liability waiver to firms
 I-T department guidelines for interest waiver in specific cases offer tax relief
 ICDS provisions to prevail over judicial precedents: CBDT
 CBDT forms committee to check absconding I-T dept officers
 Central Board of Direct Taxes asks taxman to make all out efforts to recover arrears
 CBDT to honour honest taxpayers
 Startups in the docks over marked down valuation tax as March 31 nears
 CBDT asks taxman to make all out efforts to recover arrears

Commerce depatment firm on keeping SEZs out of direct tax code
November, 20th 2009

The commerce department has opposed bringing tax-free special economic zones (SEZs) under the ambit of the proposed direct taxes code, arguing that it could hit the development of such zones and ultimately hurt exports.

SEZ developers and units in these zones at present enjoy benefits under a special Act passed by Parliament and are spared from paying taxes on profits.

However, under the code, that has been circulated by the revenue department and which seeks to streamline the countrys tax regime by minimising exemptions and lowering rates, tax benefits will be linked to investments made by developers.

The code is also unclear about the tax treatment to units that operate out of SEZs and could erode the attractiveness of SEZs for businesses. It could particularly cut tax benefits enjoyed by SEZs, especially in sectors like IT where investments are low.

The commerce department therefore wants SEZs to be kept outside the new overarching code and has indicated this in a communication to the finance ministry, a department official told ET, requesting anonymity.

Such a demand signals a hardening in the stance of the department, which had earlier sought only a written assurance from the finance ministry that the new tax regime will not be applicable on the zones where developers have already started making investments.

Director general of export promotion council for export-oriented units (EoUs) and SEZs LB Singhal said that while the proposed code contradicted provisions of the SEZ Act, ambiguities in the new proposal was making things worse and investors were shying away from taking investment decisions.

The proposed code allows so-called grandfathering of incentives, under which SEZs enjoying tax breaks under present rules would continue to do so. But there is no clarity on whether tax exemptions on export income available to SEZs and the exemption from minimum alternate tax would continue, Mr Singhal said.

He added that the government could not wait until 2011 to make clarifications as investors, both domestic and foreign, were hesitating from making investments in SEZs amid apprehension that these would fail to attract units if tax laws changed.

SEZ projects are typically long-gestation projects and lack of certainty about tax laws could make developers of these zones apprehensive about the returns that they would expect from prospective units coming up in them.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
System Testing Solution Manual Software Testing Solutions Automation Software Testing Solutions System Workflow Testing System Manual Testing

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