India Inc calls for fast-tracking of tax reforms, steps to improve biz climate

NEW DELHI: A FICCI delegation led by President Pankaj Patel met Finance Secretary Hasmukh Adhia on Thursday to suggest expeditious domestic tax reforms and measures for improving the ease of doing business scenario in the country and enhance competitiveness of Indian industry. The delegation which met the Finance Secretary as part of pre-Budget consultations, included past Presidents of FICCI Jyotsana Suri, Sidharth Birla, YK Modi, Harshpati Singhania, RV Kanoria and Secretary General Dr Sanjaya Baru.

The major issue discussed in the meeting was steps to deal with the US tax rate cut which is set to significantly impact Indian industry if corrective measures are not taken. FICCI has recommended a similar approach, as in the US on reducing corporate tax rate besides other tax changes to ensure the competitiveness of Indian exports and industry.
The FICCI delegation recommended several tax proposals that will help in achieving a more business friendly tax ambience, such as review of provisions 56(2)(X) and 50CA of IT Act 1961 to exempt ordinary and legitimate commercial transactions, withdrawal of Income Computation and Disclosure Standards (ICDS), rationalisation of the formula prescribed under the law to compute notional disallowance under section 14A of the IT Act.
The delegation also sought grant of tax reliefs/ concessions pursuant to proceedings under Insolvency and Bankruptcy Code (IBC), 2016. It was suggested that while the enactment of 'IBC' Code, 2016, ushers in a paradigm shift in the manner in which insolvency proceedings are carried out in India, there was need to encourage applicants for submitting and implementing viable resolution plans for revival of stressed assets and ensure fulfilment of the objectives of IBC through certain modifications to the Income-tax law so that the implementation of resolution plans under the IBC does not lead to undue tax costs.

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