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The Finance Ministry on Monday assured India Inc that the proposed new direct taxes code (DTC) would be implemented in full from April 1, 2013.
Some elements of the code, such as the General Anti Avoidance Rules and Advance Pricing Agreement, have already been incorporated in the Finance Bill 2012.
During calendar 2012, the Ministry will examine the Standing Committee report; follow the internal procedures of going to the Cabinet; and then come back to Parliament for introduction of DTC, the Finance Secretary, Mr R.S. Gujral, said at a post-Budget meeting organised by Confederation of Indian Industry (CII).
The Standing Committee report came only on March 9. “If it had come a month or two earlier, we could have brought it along with the Finance Bill. Suffice it to say that DTC in full form will be there next year,” Mr Gujral said.
Import curbs
He also hinted that the Government may look at curbing imports of certain products without affecting growth if the current account deficit were to cross 3.5 per cent of GDP. In the latest Budget, the Government has already hiked the import duty on gold from 2 per cent to 4 per cent to restrict its imports.
The strategic intent behind the duty hike on gold is to boost real sector and financial savings, rather than these getting caught in unproductive gold assets, Mr Gujral said. India's gold imports stood at $60 billion in the first 11 months of the current fiscal.
On spectrum auction, Mr Gujral said that the Department of Telecom had conveyed to the Finance Ministry that the entire process would be completed by January-February next year.
The Supreme Court had, on February 2, cancelled 122 telecom licences and asked the Government to conduct fresh auctions within four months. “They (DoT) have said it is not feasible to do it in four months. But have indicated to us that it will be completed by January-February,” he said.
In 2012-13, the Centre expects to mobilise Rs 40,000 crore through spectrum auction, including the airwaves to be freed by the cancellation of 122 licences.
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