US tax reforms: What India Inc should watch out for

Experts agree that the US tax reforms will affect markets around the world

A business delegation representing an industry chamber met top finance ministry officials last week as part of pre-Budget interactions. A major issue discussed in the meeting were steps required to deal with the proposed tax rate cut in the US. Corporate India’s fears that the US tax reforms will affect the competitiveness of Indian industry are not unfounded, say experts. 

The House of Representatives and the Senate have passed their versions of tax reforms Bills. Despite variations in their respective versions, broadly the Bills propose a drastic cut in the corporate tax rate from 35 per cent to 20 per cent,