Reported By:
| Edited By: dna Correspondent |Source: DNA |Updated: Mar 17, 2018, 06:51 AM IST
The Associated Chambers of Commerce and Industry of India (Assocham) has made some recommendations for the Union Budget 2011-12 which it hopes that the Centre will take into consideration.
The body said that implementation of direct tax code has been delayed and introduction of Goods and Service Tax (GST) has again missed the revised deadline with no news on when it will be implemented.
The body believes that rational GST is quite essential to simplify indirect tax structure and make India a common market.
It wants the Centre to play an active role in ensuring that the process of tax reforms continues. It said that there is a need to amend the provisions of Income Tax Act especially in relation to cross border transactions and taxation of non residents should be comparable to international practices to facilitate introduction of direct tax code.
It also called for a need to bring greater transparency in tax administration.
Speaking on the same, chairperson Assocham, Gujarat council, Bhagyesh Soneji said thin capitalisation principle is applied in certain cases without such provision in the law resulting in litigation.
"Such uncertainties adversely affect investment. There is also an urgent need to issue suitable guidelines for assessment transfer price in view of significant increase in disputes," she said.
Soneji said the change in the economic structure of the country requires review of essential commodities listed in Schedule 14 of the CST Act.
"For instance natural gas, which is used extensively as input in several industries and power generation, moves across the country through pipelines. It is recommended that natural gas be included in schedule 14 of CST Act and similar other products should be added to it as well," she said.
Soneji said the income tax holiday for certain infrastructure projects under Section 80I and in export oriented units under section 10A is expiring.
"In view of significant gap in meeting the demand for key infrastructure like power , ports and airports, the tax holiday should be extended for another 5 years to encourage investment in such projects."
