Economy

Chidambaram to meet chambers today on Budget

| | Updated on: Mar 03, 2013

Finance Minister P. Chidambaram will meet the apex industry chambers on Monday for the customary post-Budget discussion.

India Inc had hailed the Budget, although it put corporates on the mat through additional taxes, in the form of surcharge.

The Budget was considered a balanced one in the backdrop of tough economic conditions and the problem of twin deficits (current account and fiscal deficit).

Indications are that corporates would not oppose the tax proposals leading to additional revenue mobilisation for the Government.

Given that investments have to be enhanced in the economy, apex chambers are likely to welcome the Budget proposal to re-introduce investment allowance.

Monday’s meeting could well be another occasion for the Finance Minister to soothe the nerves of foreign institutional investors regarding the issue of Tax Residency Certificate (TRC).

Budget 2013-14, was largely welcomed by foreign investors except on the issue of TRC, which had raised some doubts about the approach of the taxman on allowing Tax Treaty benefits.

Finance Bill 2013-14, seeks to amend the Income Tax law to stipulate that having the TRC is a necessary but not a sufficient condition for granting Treaty benefits.

With the language of this proposal in the Bill raising some doubts, the Finance Ministry had on Friday quickly clarified the intent behind the proposal.

There is now a demand that the Government must entirely withdraw this proposal in the coming week.

Published on November 20, 2017

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