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: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: VAT RATES :: form 3cd :: due date for vat payment :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: empanelment :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: cpt :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: VAT Audit
 
 
« Budget Extravaganza »
 Are you expecting good tax breaks in Budget 2017? Think again
 Budget 2017: Home insurance premium should get income tax exemption
 Demonetisation may be the trigger for any increase in service tax rate this budget
 10 things Arun Jaitley can do to make it a Budget for the middle class
 How budget 2017 can ease pain of demonetisation via income tax sops
 Budget 2017: Do we expect an overhaul of personal income tax rates and slabs?
 All eyes on Budget 2017 proposals on capital gains tax
 Budget-2017 And Gst Expectations
 Income Tax Appellate Tribunal, Kolkata Benches Kolkata Constitution of kolkata Benches for One Week From 16.01.2017 To 19/01/2017
 What’s the big deal if budget presented on Feb 1, which law violated? SC asks PIL petitioner
 What aam aadmi wants from Budget 2017

Finance, commerce mins fight over MAT on SEZs
March, 11th 2011

India's finance and commerce ministries are locked in a dispute over a tax on export hubs announced in Budget, adding to a sense of regulatory uncertainty in the crisis-hit government. The commerce ministry wants to strike down an 18.5% duty on book profits in Special Economic Zones (SEZs), hubs with long tax holidays that were set up in the footsteps of Asian giant China to foster manufacturing growth.

Commerce minister Anand Sharma expressed ?surprise? at the Budget announcement made by his counterpart in the finance ministry, Pranab Mukherjee, and wrote a letter in protest amid worries of an exodus of developers in the zones.

On Thursday, commerce secretary Rahul Khullar , said the tax would likely act as a brake on rapid growth in the zones and send the wrong signal about India's investment climate.

Exports have grown at a huge clip from SEZs because people have made investments , because people have received assurances that there will be tax breaks,? Khullar told reporters. ?If the MAT (Minimum Alternate Tax) ends up altogether discouraging both foreign and domestic investment, what are we achieving?? he said.

The levy of MAT acts as a disincentive in two ways. One is that rules of the game are changed midstream, so somebody is going to turn around and say it?s not fair,? Khullar said. ?The second and more serious implication is this. Supposing you are a prospective investor, wanting either to set up an SEZ or invest in a SEZ by establishing a unit, you are not going to do it.?

India rolled out the policy of SEZs hoping to create millions of new jobs, attract investment and boost manufacturing via tax breaks and fiscal incentives. Government wants SEZs to raise manufacturing output to catch up with years of IT- and services-driven economic boom. The merit of the zones has been debated since their inception, both on economic performance and on social cost of land acquisition needed to create profitable SEZs in a country with hundreds of millions of rural poor.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 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