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Mukherjeee to discuss direct tax code
September, 23rd 2009

Finance Minister Pranab Mukherjee will meet leading industry chambers here on October 9 to discuss issues arising out of the proposed new direct tax regime.

The three industry bodies, CII, Ficci and Assocham are expected to take a common stand on the different contentious issues that will confront the businesses once the new direct tax code comes into effect.

It is proposed in the draft code that minimum alternate tax (MAT) of 2 per cent would apply on the gross asset value of a company instead of current levy of 15 per cent on book profits.

The industry is believed to be opposed to this draft provision on the ground that it would have to pay MAT from the day it acquires both movable and immovable assets.

Last month, the government released the direct tax code for public discourse and when approved by parliament it would replace the Income Tax Act of 1961 and other related laws.

The draft tax code also suggests abolishing the controversial securities transaction tax but seeks to reintroduce long-term capital gains tax.

 
 
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