Experts want Finance Minister to extend tax exemptions

The Finance Minister may want to scrap tax exemptions but tax experts want him to fix the tax administration and over Rs one-lakh crore in arrears reports CNBC-TV18.

Tax experts are not only in favour of tax exemptions but they want the finance minister to extend the tenure of exemption for software companies beyond 2009. "It will hurt the competitive advantage that Indian software companies currently enjoy," feels Gaurav Taneja, National Director - Tax, E&Y.

Experts also want the Finance Minister to move towards a single indirect tax regime, or the Goods and Services Tax, by 2010. But experts are worried about the tax administration's attitude towards disputes. More than Rs 1 lakh crore in disputed tax demands hang in the balance mainly because of pending cases in courts and tribunals.

"Something has to be done on the dispute resolution front. It takes 25 years at times to get a clear verdict from the Supreme Court " adds Mukesh Butani, Partner, BMR & Associates.

With tax collections having grown over 30% and expected to cross Rs 3.5 lakh crore this fiscal, tax consultants and tax payers look forward to a friendly, reformed tax administration.