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 :: TAX RATES - GOODS TAXABLE @ 4% :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: form 3cd :: ACCOUNTING STANDARD :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India :: cpt :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: list of goods taxed at 4% :: due date for vat payment :: empanelment :: VAT RATES
« General »
 Banks warn share tax hike threatens Paris' post-Brexit appeal
 PMC may decide on property tax rebate for IT firms this week
 I-T Dept is giving out certificates of appreciation. Have you received yours?
 Government works on ironing out benefits refund mechanism for exportersa
  Tax officials are using an IDS provision to question transactions beyond six-year-limit
 Tax-free bonds rally like midcap funds
 Senior citizens do not have to pay advance tax on salary and interest income
 GST: Audit commissioners to get adjudication powers
 Interest on NRE rupee account can be exempt from tax under FEMA
 Impact of GST on Real Estate Sector
 GST regime: Tax payers allowed to take option of third-party interfaces

Parliament panel wants govt to revisit corporate tax
April, 22nd 2010

A key parliamentary panel has said that the exemptions and deductions provided under the current tax laws were loaded in favour of corporates and big taxpayers, providing support to the proposed direct taxes code that has suggested replacing all profit-linked exemptions with investment-linked ones.

The standing committee on finance also suggested a review of the tax and duty exemptions to special economic zones or SEZs.

Keeping in mind the fact that most of the exemptions have outlived their would be just and equitous to put in place a policy on exemptions, the committee said in its 12th report.

Indias direct tax regime provides a large number of exemptions and deductions because of which the incidence of tax on corporates is lot lower than the nominal rate of 30.9%, including the education cess.

The effective tax rate for corporates in 2008-09 was 22.78% while that for the biggest companies or those profit before tax in excess of Rs 500 crore only 22%.

The direct taxes code, a draft of which is being debated in the government, has proposed a flat 25% tax on corporates but suggested removing all profit-based exemptions.

The code is expected to be adopted from the next fiscal. The code has also suggested the same regime for special economic zones. The commerce ministry has been arguing that the current regime for SEZs continue.

The committee has asked the government to set up a study group to review the desirability of tax and duty exemptions to SEZs to bring out the costs of tax exemptions vis--vis the benefits.

The panel made it clear that the policy on exemptions should not just reduce the percentage of tax foregone but at the same time encourage household savings, foster social security and generally favour small taxpayers.

The committee pointed that the tax concessions and exemptions provided in general have been huge and phenomenal amounting to more than half of the total direct tax collections in 2009-10. The committee notes with concern that the huge amount of revenue lost to the exchequer to more than Rs 1,50,000 crore.

In fact, if the aggregate exemptions in both direct and indirect taxes is taken into account, it works out to a massive Rs 5,02,299 crore in 2009-10 which is almost 80% of the total revenue collections.

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 developers CMS developers Content Management Solutions CMS Solutions CMS India Content Management System India CMS development India Website CMS Website Content Management India Portal CMS India CMS Outsourcing CMS Vendor Complete CMS Custom CMS Services

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