The Ministry of Corporate Affairs said that India Inc will not have to face fresh tax liability from International Financial Reporting Standards (IFRS) anymore, reports sources.
Report learns that after IFRS convergence, which will take place once the Direct Tax Code (DTC) bill is implemented in the next fiscal year, tax liability for India Inc will remain the same.
The Ministry of Corporate Affairs has suggested that Minimum Alternate Tax (MAT) should be computed as per the Generally Accepted Accounting Principles (GAAP) in India.
It also said that all taxes should continue to be charged as per Indian GAAP.
Sources say that companies will prepare a separate set of accounts for taxation.
Meanwhile, the ministry has also written to the finance ministry to resolve tax issues related to IFRS.