IT industry seeks relief from double taxation, steps to boost exports

CII has already asked Revenue Secretary Hasmukh Adhia to consult the industry before the finalising the corporate tax roadmap phase out. “As a result of enhanced public investment, even private sector players who had got bogged down in their disputes have re-entered the field”, he said.

“As the government draws up a plan to eliminate exemptions and reduce the corporate tax rate, we feel that it must simultaneously look at a reduction in the Minimum Alternate Tax rate”, according to a statement from FICCI.

Union Finance Minister Arun Jaitley on Thursday said the Indian economy has emerged as one of the fastest growing economies in the world with its gross domestic product ( GDP) growth accelerated at 7.3 percent in 2014-15 compared to 6.9 percent growth in 2013-14 and 5.1 percent in 2012-13, indicating that the economy is firmly on the path of economic revival. “We are totally in support of removal of incentives and allowances”, CII President Sumit Mazumder said after the meeting.

“He (the Finance Minister) did refer to it obliquely (in the meeting)…it will happen soon”, Neotia said, adding that the industry has not lost hope on this.

Both industry bodies requested implementation of the Tax Administration Reforms Commissions recommendations to overhaul the tax administration of the country.

Nasscom president R. Chandrashekhar said it had proposed the mitigation of tax liabilities, particularly taxes that are taken upfront. He highlighted how in the first half of the Current Financial Year 2015-16, Indian economy has achieved robust growth rate despite volatility and uncertainty in global economy.

Assocham President Sunil Kanoria said he has suggested that the tax regime should be improved along easily of doing business.

“The discussions were on issues related to start-ups, e-commerce and Internet and mobile companies. We would recommend that capital expenditure on key projects in sectors such as roads, railways, irrigation and power be increased substantially”.

Commenting on the recently set up National Infrastructure Investment Fund, the minister said the government is in touch with many global sovereign and pension funds to become partners.

In their recommendations for Budget 2016/17, the industry bodies have said that though they welcome the move to remove exemptions, they also think that MAT should be withdrawn or the rate should be reduced in a calibrated manner.

“For this if we need to recalibrate the fiscal deficit target a bit, then we must go ahead with the same”, Neotia said, adding that there is a need to widen the tax base.