Secretary ministry of corporate affairs R Bandyopadhyay told reporters on Thursday that companies switching to IFRS should not be penalised by a higher tax burden, an issue that the finance ministry should look into. "There should be no adverse impact on companies for switching to IFRSthe finance ministry should look into this issue," he said.
The secretary said that the ministry has formed a core committee under his chairmanshipThe National Committee on Implementation of IFRSthat has representation from both the finance ministry and the Central Board of Direct Taxes (CBDT). The committee would look into the broad issues for companies switching to the new accounting standard. "Finance ministry officers are represented in the committee. They will look into maters of tax implications," Bandyopadhyay said.