Budget to nudge I-T regime closer to DTC
The industry wants the scope of CFC provisions to be narrower, limited to one level of overseas subsidiaries and credits to be allowed on the taxes paid by the foreign subsidiary abroad. DTC had proposed a 15% BPT in lieu of a reduction in income tax rate for foreign companies from 42% to 30%.
Chidambaram’s advisor Parthasarthy Shome had said last week that the ministry would increasingly follow the approach of looking at contentious tax matters from a global perspective, even as New Delhi strives to revive investor sentiment. Chidambaram on Tuesday urged his officers to follow a friendly approach, which would enhance tax compliance. “As we go forward, we should rely more on technology, non-intrusive intelligence gathering and a non-adversarial tax administration,” Chidambaram said while addressing officials
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