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Cut tax for non-banking firms: Manoharan
August, 17th 2009

T N Manoharan, former president, Institute of Chartered Accountants of India (ICAI), says the minimum alternate tax (MAT) rate for non-banking companies must be brought down.

He said corporates will not need to pay wealth tax, and capital- intensive companies will have a higher tax outlay. Lesser corporate tax rate will benefit only non-MAT companies, he added.

The draft direct tax code will widen the tax base, bringing in newer players and reduce multiple interpretations, he said.

Lower cost of compliance would discourage tax evasion, Manoharan said.

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