Budget 2020

Budget 2018: Jaitley to hold pre-Budget talks with trade and industry on Dec 6

K.R.Srivats New Delhi | Updated on January 09, 2018 Published on December 01, 2017

Arun Jaitley, Finance Minister

Tax issues post GST implementation, relief under IBC likely to figure at meeting

Finance Minister Arun Jaitley will hold the customary pre-Budget consultations with trade and industry sector representatives on December 6.

The meeting will be followed by one between the Finance Secretary Hasmukh Adhia and trade and industry associations on December 11 at North Block, official sources said.

Indications are that Jaitley will hold his pre-Budegt meeting with bank chiefs and non-banking finance companies on December 15.

At the pre-budget meeting on December 6, captains of industry are widely expected to raise tax-related concerns following GST implementation, besides issues on the Insolvency and Bankruptcy Code (IBC) 2016.

Apex industry associations like Assocham have already written to Jaitley seeking tax reliefs for implementation of resolution plans under the Insolvency and Bankruptcy Code 2016.

In a recent letter to Jaitley, Assocham Secretary-General DS Rawat had suggested that the National Company Law Tribunal (NCLT) be given statutory powers to grant concessions/reliefs from certain provisions of the Income Tax Act in the approved resolution plan order. This is needed to ensure wider participation of serious resolution applicants and effective restructuring of stressed businesses, according to the Assocham letter.

NCLT should be authorised to grant relief from the applicability of anti-abuse provisions of Sections 56(2), 50C and 50CA in respect of issue /acquisition /transfer of the applicable assets, covered by these provisions, in accordance with the approved resolution plan, the chamber has suggested.

Corporate debt

Assocham has also suggested that NCLT be authorised to allow carry forward all accumulated tax losses/unabsorbed depreciation of corporate debtor to the transferee entity post the transfer of business/undertaking under any restructuring exercise carried in accordance with the approved resolution plan. This should be allowed notwithstanding Section 71 A and 79 of the Income Tax Act, the chamber said.

Published on December 01, 2017
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