FinMin to start industry interaction for Budget 2015-16 from November
The first bilateral advance-pricing agreement (APA) between Indian and Japanese tax authorities in case of a particular company based in Japan has been finalised and would be inked very soon, Revenue Secretary, Mr Shaktikanta Das said at an ASSOCHAM event.We are undertaking efforts to speed up and quicken the process of APAs and I am happy to mention that the APA between India and Japan in a particular company's case is finalised and it would be inked very soon, said Mr Das while inaugurating the 11th International Tax Conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
This will bring in lot of clarity between our tax perception and activity of that particular company and the agreements between tax authorities in India and Japan, said the Revenue Secretary.
He said that it augurs very well for investors from Japan who are looking at India owing to a very successful visit undertaken by the Prime Minister, Mr Narendra Modi.
I think the APA to be signed between tax authorities of India and Japan will definitely give a very strong signal to all other Japanese investors and companies to look at India more positively, added Mr Das.
He further informed that Department of Revenue would start the activity relating to the budget of 2015-16 from next month.
From November onwards we will get on with our interaction with various industry groups, we will be starting our homework as part of preparation of the next budget, said Mr Das.
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As we're moving towards the next budget we're looking forward to an active engagement, very concrete and actionable suggestions from the industry, he added.
Talking about the advance ruling facility being given for resident taxpayers in this year's budget, Mr Das said, The threshold limit is under discussion and we would be coming out with the threshold limit for that and the whole notification.
He further said that the principles of transfer pricing, range concept, multi-year data have been introduced by the Government thereby showcasing a very clear cut commitment of the Finance Ministry. The notifications in this regard will be issued very shortly as they are under finalisation.
The Revenue Secretary also said that the clarity given on earning of foreign portfolio investors to be treated as capital gain is a very encouraging signal for foreign portfolio investors to shift base and locate themselves in India.
He said that providing a predictable, business friendly and enabling taxation regime is a two-way process and it has to be outcome of partnership between the department and tax experts, professionals, tax executives and leading industrialists/entrepreneurs.
It has to be a partnership effort between industry and practitioners/experts and the Revenue Department as there is a need for constructive engagement, said Mr Das.
We should move away from this whole business of aggressive tax planning vis-a-vis aggressive assessments, he added.
In an appeal to all stakeholders including investors, corporate houses and tax practitioners, he said that there is a need to keep aside the 7-8 high-profile pending cases and come together, move ahead and work in a spirit of co-operation and partnership.
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