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: articles on VAT and GST in India :: TDS :: due date for vat payment :: form 3cd :: ACCOUNTING STANDARD :: VAT Audit :: list of goods taxed at 4% :: cpt :: ACCOUNTING STANDARDS :: Central Excise rule to resale the machines to a new company :: empanelment :: ARTICLES ON INPUT TAX CREDIT IN VAT :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4%
 
 
« Direct Tax »
 CBDT committee to review 'naming, shaming' of tax defaulters
 CBDT committee to review ‘naming, shaming’ of tax defaulters
 Can we measure demonetisation’s impact on income tax collections?
 CBDT signs 2 more advance pricing pacts
 Income tax returns: How to calculate income from house property
 CBDT proposes new accounting standards for real estate firms
 1 lakh entities face I-T action as ‘clean money’ drive gains pace
 Here are 4 things to know about how CBDT improves ease of doing business by issuing PAN and TAN within 1 day
 Online platforms make tax filing easy, help fill details automatically
 Delhi HC refuses to stay tax case against Young Indian
 CBDT issues draft ICDS on real estate

CBDT: Revenue diversion from non-SEZ areas to SEZs noticed
March, 08th 2011

Amidst hue and cry by developers over the Budget proposal to impose MAT on SEZs, Central Board of Direct Taxes today said it has detected revenue diversion from domestic operations to the tax free enclaves.

"There is a huge shift of turnovers from non-SEZs to SEZs. There is diversion of current revenue to SEZs," Central Board of Direct Taxes (CBDT) Joint Secretary (Tax Policy and Legislation) Ashutosh Dikshit said.

In his Budget for 2011-12, Finance Minister Pranab Mukherjee has proposed to levy 18.5 per cent Minimum Alternate Tax (MAT) on Special Economic Zones (SEZs) developers and the units therein.

Under the SEZ Act, both developers and the units enjoy exemptions from income tax.

The Finance Ministry has been conveying its concerns over the revenue loss from these zones.

Following strong reaction from the SEZ developers, Commerce Minister Anand Sharma has said that he would take up the issue with the Finance Minister.

Addressing a post-Budget event organised by the American Chamber (Amcham), Dikshit said the proposal to bring SEZ developers and units under the ambit of MAT is in line with the government's policy to broadbase the taxation structure in the run-up to the Direct Taxes Code (DTC) from April 1, 2012.

"It is totally in line with policy. There is nothing like free lunch. I think the message has gone out well," he said.

Dikshit said though SEZs were originally intended as enclaves to promote manufacturing, the outcome has been quite different.

"The SEZs are supposed to be for manufacturing. But what you find is that all SEZ exports are services and more specifically IT exports. The government and the industry are both to be blamed for this," he said.

The senior official said in the last fiscal, exports from SEZs went up by 110 per cent even as the country's overall shipments abroad were stagnant.

His comments came a few days after Revenue Secretary Sunil Mitra said the proposal had an implication of Rs 15,000 crore.

"Profit linked incentives are resulting in shifting (of units) to SEZs," Mitra had said while addressing a CII deliberation.

According to the government's projection, the revenue foregone on tax incentives to SEZ units in the current fiscal is Rs 5,126 crore, up from Rs 4,233 crore in 2009-10.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Enterprise Resource Planning Solutions ERP Solutions Enterprise Resource Planning Software Solutions ERP Software Solutions Supply Chain Management Solutions SCM Solutions Supply Chain Management Software Solutions SCM Software Solutions Enterprise Resource Planning Solutions India ERP Solutions India Enterprise Resource Planning Software Solutions India ERP Software Solutions India Supply Chain Management Solutions India SCM Solutions India Supply Chain Management Software Solutions India SCM Software Solutions India

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