India’s Finance Minister, held a discussion meeting with representatives from trade and industry bodies before the budget, which pressed the Government to familiarize expectable tax policies to adoptive greater confidence in India as a place to invest and do business.
The Confederation for Indian Industry (CII) pushed for an amendment to the Income tax act to reverse the retrospective amendment in the dispute with Vodafone, and called to an end to such policies.
Proposed changes are summarized below:
· Need to introduce a simple, transparent and non-adversarial tax regime.
· Introduction of a General Anti Avoidance Rule, in the proposed form as there are a number of ‘grey areas,’ which need to be removed before its implementation. Its introduction in 2015 in its present form would exacerbate uncertainty and dissuade foreign investors for making India a ‘gateway’ for investment. Other attendees at the meeting agreed, and the Indian Government was told that the GAAR should be deferred for at least three years. They also called for Indian authorities to continue fiscal consolidation efforts and push for the implementation of the goods and services tax.
The meeting was appeared by senior officials from the Ministry of Finance and representatives from the Federation of Indian Chambers of Commerce and Industries, the Associated Chambers of Commerce and Industry of India, and the National Association of Software and Services Companies, among others.
