Industry & Economy
-
Taxation
FICCI outlines agenda for tax laws review
Our Bureau
New Delhi
,
Aug. 21
THE Federation of Indian Chambers of Commerce and Industry has outlined a multi-pronged agenda for reviewing domestic tax laws and treaties in order to make the tax laws more compatible with the rest of world, attract foreign investment and make cross border transactions more effective and meaningful.
Cascading effect of dividend distribution tax (DDT) should be avoided. From a foreign shareholder's perspective, DDT may not be preferred since it is generally not eligible for claiming tax credit against his home country tax, says the chamber.
In the area of transfer pricing, valuation of intangibles is subjective and depends on various factors affecting a particular transaction. The Central Board of Direct Taxes may have to notify specific guidelines pertaining to valuation of intangibles, says the chamber.
There is a need to encourage research and development activity in the country. Otherwise foreign companies will bring their patented products at higher prices and take the market away from Indian companies, feels the chamber.
After putting in place the state-level value added tax (VAT), time is ripe now to chart a roadmap for national VAT. A roadmap should be laid down with total incidence of 20 per cent which would provide the competitive edge to the country in the global matrix, feels the chamber.
Article
E-Mail
::
Comment
::
Syndication
::
Printer Friendly Page
|
