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July 18, 2001
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Money > Business Headlines > Report July 18, 2001 |
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Govt soon to set up panel for redrafting I-T ActBS Economy Bureau Revenue secretary S Narayan on Tuesday said that a committee to redraft the Income Tax (I-T) Act would be constituted soon. Addressing a workshop on transfer pricing organised by the Confederation of Indian Industry, Narayan said that the panel would also look at the effect of tax exemptions on the allocation of capital. He said that the objectives guiding the review of the I-T Act would be to ensure assessee-friendly laws that encourage tax compliance. "The government is moving in a direction for making income tax laws assessee-friendly, but for non-compliance, there should be deterrent and very harsh punishments," said Narayan. He, however, added that the review exercise was not to take away any concessions but to keep pace with the rapid changes taking place in the business environment. Narayan pointed out that there were a lot of concessions, which protected profits and were available for investments. "Investments should take place in infrastructure. If not, one has to question a spectrum of reasons. Some of the tax concessions are misdirected," he said. He stressed that the tax regulations in the country had to be made compatible to the global practices, and transfer pricing legislation was a step in that direction. Narayan said that the legislation would be applied moderately to ensure that it did not become a source of harassment. He assured the industry that the government would maintain data confidentiality in line with the World Trade Organisation guidelines while assessing international transactions of corporates under the proposed transfer pricing norms. Addressing the workshop, chairman of the Central Board of Direct Taxes, A Balasubramanian said "advance pricing arrangements" with companies in regard to transfer pricing would be introduced at an appropriate time when comparables became available. Balasubramanian stressed that it would be the endeavour of the CBDT to ensure that documentation requirements in transfer pricing did not hamper operations. Powered by YOU MAY ALSO WANT TO READ:
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