Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: empanelment :: VAT RATES :: TDS :: TAX RATES - GOODS TAXABLE @ 4% :: due date for vat payment :: articles on VAT and GST in India :: Central Excise rule to resale the machines to a new company :: list of goods taxed at 4% :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: ARTICLES ON INPUT TAX CREDIT IN VAT :: form 3cd :: VAT Audit
 
 
« General »
 Tax collection assumptions in India's budget ambitious
 All scrutiny cases, sans search, to be e-assessed
 Key tax changes that will come into effect from April 1
 Eight lakh companies on Income Tax department radar for not filing tax returns
 4 things a taxpayer shouldn’t miss
 Impact on LTCG will be more than 10 per cent
 Here's how much the tax reliefs you want will cost the finance minister
 Companies (Appointment and Qualification of Directors) Amendment Rules, 2018
 How young earners can claim HRA tax exemption with ease
 IT firms eye change in foreign tax credit rule
 The most thrilling idea before every Budget: No income tax

'Infra firms should be exempt from MAT'
July, 21st 2010

The proposed direct tax code should exempt infrastructure companies from imposing the minimum alternative tax (MAT) or levy lower level of MAT to facilitate the growth of public-private partnership projects in the country.

"Imposition of MAT on infrastructure companies will put pressure on the operating margin and may hinder the growth of PPP model projects in the country," N Rangachary, former chairman of CBDT and IRDA, said in a workshop arranged by the Bangalore Chambers of Commerce and Industry on Direct Tax Code here.

He also said that as infrastructure projects had long gestation period with huge capital needs, DTC should have special concession for these companies.

The Centre has proposed to implement a new direct tax code in April, 2011, by replacing present Income Tax Act for simplifying tax regulations in the country. Recently, the revised draft of DTC have been released for public consultation and is expected to be passed by Parliament in the winter session.

While infra companies will not get tax exemption benefit under 80 IA under proposed new norm, levy of MAT will obstruct private fund flow into infra sector. "Though there is status quo being maintained on imposition of tax on book profit, complete exemption from MAT or lowering of MAT rate will favour infra growth in the country," K R Girish, partner, KPMG, said.

Similarly, the proposed withdrawal of tax incentives for SEZ under DTC will adversely impact the growth of small and medium scale industries in the SEZ unit.

"While there are no tax incentives available to SEZ units set up post April, 2011, the revised framework of DTC is still not clear about availability of tax holiday for expansion carried out by existing SEZ units," Girish said. Further, tax calculation on the basis of investment and not on profit will burden the SME units in the SEZ, he added.

As per the revised draft of DTC, issues like MAT exemption to SEZ unit, and lack of clarity on continuance of present framework may pose challenge to the future growth of SEZ unit. However, industry experts said that the present anomalies in the draft code is expected to be modified before final approval.

"The Government is serious about providing tax concession to infrastructure companies and an enabling environment is expected from the Centre regarding this," K R Sekar, chairman of direct taxes expert committee, BCIC said.

He said, centre was expected to take measures to protect SMEs in SEZs which could be affected post DTC.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
SEO Company Search Engine Optimization Company US SEO Local SEO Company Website SEO Company Alabama SEO Company Alaska SEO Company Arizona SEO Company Arkansas SEO Company California SEO Company Colorado SEO Company Connecticut SEO Company Delawa

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