Feb 11, 2013, 05.05 PM | Source: CNBC-TV18
We learn from sources that the finance ministry is considering the taxation of controlled financial corporations. CNBC-TV18’s Aakansha Sethi reports.
Aakansha Sethi (more)
Reporter, CNBC-TV18 |
This was part of the first draft of the direct taxes code (DTC). The idea is that those companies that are offshore entities, foreign companies that are controlled by Indian resident tax payers, will be taxed and will be brought under the tax net. It remains to be seen if this proposal has actually gone forth.
Another proposal from the DTC that is being taken up is minimum alternate tax (MAT) on gross assets. It was dropped in the second draft of the DTC after strong opposition from industry. However the finance ministry is thinking of ways to extend both the alternative minimum tax (AMT) and the MAT. One of them is MAT on gross assets, at a rate of say one percent. The other is to increase the MAT rate to 20 percent from the current rate which is again the rate at which it was there in the DTC.
There are other quarters in the finance ministry that are saying that it is important for this Budget to be investor friendly and not introduce anything that will deter financial and equity markets in any way. So, it remains to be seen what decision is finally taken. At this point both these proposals are being discussed in the Budget meetings.
Budget 2016: Now or never: Hanging out with the Gamesa India boss
Gamesa India Chairman Ramesh Kymal emphasized on t
Railway Budget to focus on attracting more investments: Prabhu
Bill to regularise illegal houses in budget session: Goa CM
Budget 2016: Service tax holiday for base-level health insurance a must
Insurance buyers must be offered incentives to buy
Budget 2016: Equity Fund-of-Funds should get tax treatment of equity funds
These schemes are treated as debt funds for the pu
Rs 1,400 cr in UP budget for drought-hit Bundelkhand
The fund size of special projects for Bundelkhand