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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
News Headlines »
 How to file income tax returns online if you don't have Form 16 ITR 2018-19
 These 5 websites can help you file your ITR Income tax e-filing
 Here's why some retirees no longer have to file a tax return
 How to file different categories of ITR forms online Income tax e-filing
 Here are other documents you need to file online ITR Got your Form-16 for FY18?
 10 must have documents to file your tax return
 Know all about how to file ITR FY 2017-18
 Government extends sale of pre-GST goods with stickers of revised price till July 31
 All 7 ITR forms for assessment year 2018-19 activated for e-filing: Income Tax Department
 Check if new salary structure is income tax efficient
 GST refund drive extended till June 16

Honchos seek help in global hunt
January, 10th 2007

India Inc, which is on a major acquisition spree abroad, has sought government incentives to support its global ambitions. In its wishlist for Budget 2007, industry sought a slew of tax benefits, reduction in corporate tax rates and removal of fringe benefit tax (FBT).

In the pre-Budget meeting with finance minister P Chidambaram, industry captains asked the government to give tax benefits to support domestic companies that are acquiring companies abroad. They also wanted government to bring down incidence of total tax from about 38% to 25%.

The suggestion was put forward that there be incentives from the government certain tax benefits to support the Indian companies going global. Companies such as Tata Steel must be given incentives for its acquisition bid for Corus as its Brazilian rival CSN is also being supported by the government, said Videocons VN Dhoot.

The demand comes amidst heavy-duty action on the global M&A front, with the Tatas slugging it out with Brazils CSN for Corus and Videocon trying to salvage its bid for South Koreas Daewoo Electronics. Domestic industry has been on a global acquisition drive, spending close to $9.9 billion on buying companies abroad in 2006, according to Grant Thornton.

According to sources, Tata group chairman Ratan Tata is believed to have suggested that the government should encourage special economic zones (SEZ) to create employment and ensure industry gets raw materials at internationally-competitive prices.

Bhartis Sunil Mittal is learnt to have proposed the correction of the inverted duty structure and reduction in service charges paid by telecom companies to the department of telecommunications. We have asked for a growth Budget, he said.

Reducing the corporate tax from 30% to 25%, removing FBT on sales promotions, increasing depreciation rates to 25% for tax purposes and moving towards an effective goods and services tax of 15% in the next few years were some other key recommendations.

Infrastructure and support to R&D were high on industrys mind too. There was an across-the-board recommendation for extension of the weighted deduction for R&D expenses, which is due to expire in March 2007, indefinitely, and if not that, at least for another 10-15 years, said Ranbaxy CEO and MD Malvinder Singh.
 
Notwithstanding the finance ministers speech on Monday where he hinted at fewer tax exemptions going forward, the industry also asked for tax exemptions to encourage investments in infrastructure. TVS CMD Venu Srinivasan said, As a two-wheeler manufacturer, I suggested that the urban infrastructure needs to be improved.

Extension of the textile upgradation fund scheme (Tufs) for the textile sector, correction in anomalies of excise and Customs duties and were other key recommendations. The meeting was attended by Ratan Tata, Sunil Mittal, Malvinder Singh, Venu Srinivasan, VN Dhoot, Kiran Mazumdar-Shaw, Saroj Poddar, Swati Piramal, Kiran Karnik and R Seshasayee.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

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