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 :: list of goods taxed at 4% :: empanelment :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ACCOUNTING STANDARD :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: Central Excise rule to resale the machines to a new company :: VAT RATES :: VAT Audit :: cpt
Direct Tax »
 CBDT issues final rules for taxing share buy back by companies
 CBDT issues final rules for taxing share-buyback
 The direct tax collections up to September, 2016 are at Rs. 3.27 lakh crore which is 8.95% more than the net collections for the corresponding period last year.
 IDS is tremendous success: CBDT chief Rani Singh Nair
 Submit monthly data of appeals disposed of: CBDT to officers
 Direct tax mop-up jumps 9 per cent in H1, indirect tax up 26 per cent
 Income tax department slams notice on five Mumbai-based exporters over offshore accounts
 Redress TDS mismatch grievance of taxpayers: CBDT
 Tax department changes rule for accommodating deductions for deferred spectrum payment
 Tax dept renotifies income computation, disclosure standards
 Sushil Chandra to be the next CBDT chief

Rationalise direct taxes to mitigate slowdown effects
February, 15th 2010

The Confederation of Indian Industry (CII) has urged the government to rationalise direct taxes which would help consolidate the manufacturing sector, mitigating the effects of the global slowdown, and also facilitate its transition to the next level of growth.

"Rationalisation in direct taxes is among the critical policy instruments with which the government can help the manufacturing sector to consolidate its position not only to mitigate the effects of the global slowdown but also to facilitate its transition to the next level of growth," the CII said in a statement.

While the current growth figures are encouraging, account needs to be taken of the fact that the impressive numbers are owing to a low base in December 2008 when there was a 0.2 percent decline in output, the CII said.

India's Index of Industrial Production (IIP) grew 16.8 percent in December last year while it was 11.7 percent in November and 10.3 percent in October. The manufacturing sector saw its output surge 18.5 percent during December last year, according to official figures.

The industry body also urged  substantial rationalisation of the Minimum Alternative Tax (MAT) to promote investment.

MAT was introduced by the government to counter the rapid increase in the number of zero tax companies arising out of tax exemption, deduction and higher depreciation and also widening the tax net. The rate has been increased gradually to reach 15 percent last year.

"We feel that such a high rate of MAT dilutes the intended incentives available to industry," the CII said.

The CII also stressed on the need to boost investment and employment through fiscal incentives at a time when non-food credit is growing at a rather conservative pace of 15 percent compared to around 30 percent before the onslaught of the slowdown despite enough liquidity in the system.

"The upward pressure on interest rates with growing tightening of the monetary policy further justifies the need for investment- linked fiscal incentives for the sector," the CII said.

Besides this, the CII has also urged Finance Minister Pranab Mukherjee to address the concern of  industry with regard to complexities involved in tax payments, which raise monetary and non-monetary cost of compliance.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Content Management System development CMS development Content Management Solutions CMS Solutions Content Management Services CMS Services CMS Software

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