CII seeks tax benefits for M&As in all sectors
11 Feb 2013 8:08 AM IST
Industry body CII on Sunday asked the government to extend tax benefits pertaining to mergers and amalgamations (M&As) to all businesses such as telecom, sports, IT and entertainment.
The move will help industry to reorganise and restructure operations in sync with the rapidity of changes taking place in the business environment as well as to deal with the emergence of new sectors and segments, it said.
Currently, M&A tax benefits are limited to industrial undertakings and select services such as shipping, hotels, aircraft and banking.
In its pre-Budget memorandum, CII said that those benefits 'should be extended to all businesses, including telecom, financial services, entertainment, sports, information technology and IT enabled services, among others'.
The industry body argued that the term 'industrial undertakings' has excluded a large number of business activities including those operating in crucial services sector from the benefit.
It also asked for simplification of provisions of Section 72A in respect of the stringent conditions applicable for the amalgamating company like losses/depreciation being unabsorbed for at least three years.
The move will help industry to reorganise and restructure operations in sync with the rapidity of changes taking place in the business environment as well as to deal with the emergence of new sectors and segments, it said.
Currently, M&A tax benefits are limited to industrial undertakings and select services such as shipping, hotels, aircraft and banking.
In its pre-Budget memorandum, CII said that those benefits 'should be extended to all businesses, including telecom, financial services, entertainment, sports, information technology and IT enabled services, among others'.
The industry body argued that the term 'industrial undertakings' has excluded a large number of business activities including those operating in crucial services sector from the benefit.
It also asked for simplification of provisions of Section 72A in respect of the stringent conditions applicable for the amalgamating company like losses/depreciation being unabsorbed for at least three years.
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