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: ACCOUNTING STANDARDS :: cpt :: VAT RATES :: TAX RATES - GOODS TAXABLE @ 4% :: TDS :: empanelment :: Central Excise rule to resale the machines to a new company :: articles on VAT and GST in India :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: ARTICLES ON INPUT TAX CREDIT IN VAT :: list of goods taxed at 4% :: form 3cd :: VAT Audit :: due date for vat payment :: ACCOUNTING STANDARD
 
 
Direct Tax »
 In some instances, filing of income tax return may not be mandatory
 Best 5 Income Tax-Saving SIP plans in India: How To save taxes by Investing in SIPs under 80C
 Tax refund checks are finally in the mail
 Income Tax dues in advance can be paid at RBI or at authorised bank branches by March 2017
 Why you must be looking beyond tax planning
 I-T dept. to lauch app for paying tax
 CBDT to taxman: Step up TDS survey operations to boost collections
 Tax Officers Asked To File Self-Appraisal Report On E-Assessment
 CBDT to taxman: Step up TDS survey ops to boost collections
 Govt to issue exemption list on new tax for unlisted firms
 CBDT issues third round of certificates to tax payers

Planning Commission favours imposition of direct tax on SEZs
July, 10th 2008

Though the Planning Commission favours imposition of a direct tax on Special Economic Zones (SEZs), it does not agree with the contention that these tax-free industrial enclaves are leading to revenue loss.

"As part of economic reforms, income tax exemption on exporters were phased out. It continues in the Export-Oriented Units (EoUs) and Software Technology Parks of India. The introduction of direct tax exemptions is in some way a retreat in the direction of reforms, that has been going on. This also leads to lack of level playing field for exporters located outside the zones," said Anwarul Hoda, member, Planning Commission, at a seminar organised by Assocham here today.

Speaking about the Planning Commission's view on the SEZs, Hoda added that there should not be any change in the SEZ Act in the near term. "Our view is not to make any changes in the policy whatever be the imperfections. But level playing field is an issue that will come back again," he said.

The finance ministry is in favour of imposing a minimum alternative tax on zones and the issue is pending with the Empowered Group of Ministers (EGoM) on SEZs, which is headed by External Affairs Minister Pranab Mukherjee. The EGoM was scheduled to meet on Thursday, but the meeting has been postponed.

Hoda also said that SEZs are not real estate development and will play an important role in the urbanisation of the country. "It is expected that 50 per cent of India would be urbanised by 2050. Agriculture growth is not sufficient to sustain the increasing living standards of farmers. To stop migration from rural areas, we either let slums develop or build planned townships inside or around industrial area like SEZs," he said.

Significantly, the Reserve Bank of India classifies SEZ projects as real estate, which leads to an increase in the cost of financing by up to to per cent, compared to infrastructure projects.

Hoda added that concerns of revenue loss because of the tax-free industrial enclaves are misplaced and "exaggerated". It does not make much difference as far as the level of revenue is concerned, if 85 per cent of the SEZ produce is exported.

Moreover, Hoda also refutes the view that SEZs would lead to lesser availability of agriculture land as current data shows only one-hundredth of one per cent of the total land area in India is being used by the zones.

"I am not saying that large amount of land needs to be taken away from agriculture. What I am saying is that one hundredth of one per cent of agricultural land being diverted does not make much difference," he said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Organic SEO Outsourcing Organic Search Engine Optimization Outsourcing Organic Website SEO Organic SEO India Website SEO India Organic Search Engine Optimization India Organic Internet SEO India Organic Web

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