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Tax code on track: CBDT
September, 17th 2008

Even though the present UPA government, now in its election year, would only be presenting a vote-on-account in February 2009, the new tax code was on track, Central Board of Direct Taxes (CBDT) member legal, Mr Ajai Singh, today said.

The 1961 tax code no longer keeps pace with current business development, Mr Singh said addressing the 5th International Tax Conference organised by the Associated Chambers of Commerce and Industry (Assocham). Despite acute shortage of qualified tax manpower in the finance ministry, 20 per cent of high knowledge volume manpower has been engaged to draft the new tax code. It would be shortly referred for Cabinet approval, he added as per an Assocham release.

With this, Mr Singh assured Indian Inc, his ministry would put in place a simpler new tax code in this fiscal itself to ensure that business remained competitive and cross border disputes barely referred to jurisprudence for resolution.

The new tax code would see the transfer pricing issue sorted out in a manner that level playing field was ensured for multinational corporations operating in India vis--vis domestic corporates, Assocham said. With the proposed tax code in place, a new global transfer pricing strategy would be evolved to satisfy all elements, organisations and concerned stakeholders.

The new tax code would ensure that the entire supply chain, including research and development, manufacturing, marketing, distribution and after sale services were kept intact to maintain accuracy in tax compliance, Mr Singh indicated.

 
 
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