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Posted by ac77kq38
- January 09, 2011, 11:45:54 PM"Uniformity should be made applicable across the board in respect of deemed fringe benefits. The amount paid as FBT should be allowed deduction under Section 40(A), as even in a similar case of tax paid by an employer on any perquisite given to employee is presently allowed a deduction," Ficci said.
The industry chamber also pointed out that the present deduction benefit of 150 per cent on research and development was allowed in few sectors.
They pay another 3 per cent points as surcharge and educational cess, while the lowered depreciation rates thrust an additional tax of 1 to 2 percentage points.
It also suggested that the income limit should be increase to Rs 100,You are not allowed to view links. Register or Login,00,00. The industry chamber also said in China, 30 per cent tax rate applied only to income above Rs 400,00,00.
?"The weighted deduction so allowed in India results in a tax advantage of only 7-8 per cent. The government must provide the grant up to 35 per cent on research as is the practice in most of the countries in the world. Or else to give incentives to research and development in the country,You are not allowed to view links. Register or Login, the existing benefit of weighted deducted of 150 per cent should be extended to all sectors of the economy on a long-term basis," Ficci pointed out.
Calling for a change in income tax rates, Ficci said the maximum tax slab of 30 per cent should be applicable only on income of over Rs 500, 000 against the present limit of Rs 150,000.
Calling for change in the present FBT system, Ficci suggested that genuine business expenditure such as sales promotion, including publicity, conference, conveyance, tour and travel, and hotel, boarding and lodging expenses, should be allowed deduction. Besides, FICCI also wanted superannuation expenses to be brought outside the ambit of FBT.
Ficci also pointed out that taxes in countries like Canada, Germany, Hong Kong, Korea,You are not allowed to view links. Register or Login, Singapore and Taiwan were much lower.
Calling for an earlier abolition of CST, FICCI said it might be desirable to have a road map for national VAT with overall incidence of 20 per cent (CENVAT 12 per cent and state VAT 8 per cent) to provide us the competitive edge in the global matrix.
Ficci also wanted depreciation on plant and machinery to be increased to 25 per cent from the present 15 per cent.
Overhaul income, perks taxes: Ficci
According to Ficci, the overall tax incidence on corporate India is about 40 per cent,You are not allowed to view links. Register or Login, which makes it completely non-competitive in the international market.
The Federation of Indian Chambers of Commerce and Industry has recommended the rationalisation of fringe benefit tax, reduction of the overall tax burden on companies and individuals, and changes in the rules regarding standard deduction and depreciation, as a move towards reforming the country's tax regime.
Indian companies today pay 30 per cent corporate tax on their profits, besides 3 to 4 per cent points each as dividend distribution tax and FBT.
The industry chamber also pointed out that the present deduction benefit of 150 per cent on research and development was allowed in few sectors.
They pay another 3 per cent points as surcharge and educational cess, while the lowered depreciation rates thrust an additional tax of 1 to 2 percentage points.
It also suggested that the income limit should be increase to Rs 100,You are not allowed to view links. Register or Login,00,00. The industry chamber also said in China, 30 per cent tax rate applied only to income above Rs 400,00,00.
?"The weighted deduction so allowed in India results in a tax advantage of only 7-8 per cent. The government must provide the grant up to 35 per cent on research as is the practice in most of the countries in the world. Or else to give incentives to research and development in the country,You are not allowed to view links. Register or Login, the existing benefit of weighted deducted of 150 per cent should be extended to all sectors of the economy on a long-term basis," Ficci pointed out.
Calling for a change in income tax rates, Ficci said the maximum tax slab of 30 per cent should be applicable only on income of over Rs 500, 000 against the present limit of Rs 150,000.
Calling for change in the present FBT system, Ficci suggested that genuine business expenditure such as sales promotion, including publicity, conference, conveyance, tour and travel, and hotel, boarding and lodging expenses, should be allowed deduction. Besides, FICCI also wanted superannuation expenses to be brought outside the ambit of FBT.
Ficci also pointed out that taxes in countries like Canada, Germany, Hong Kong, Korea,You are not allowed to view links. Register or Login, Singapore and Taiwan were much lower.
Calling for an earlier abolition of CST, FICCI said it might be desirable to have a road map for national VAT with overall incidence of 20 per cent (CENVAT 12 per cent and state VAT 8 per cent) to provide us the competitive edge in the global matrix.
Ficci also wanted depreciation on plant and machinery to be increased to 25 per cent from the present 15 per cent.
Overhaul income, perks taxes: Ficci
According to Ficci, the overall tax incidence on corporate India is about 40 per cent,You are not allowed to view links. Register or Login, which makes it completely non-competitive in the international market.
The Federation of Indian Chambers of Commerce and Industry has recommended the rationalisation of fringe benefit tax, reduction of the overall tax burden on companies and individuals, and changes in the rules regarding standard deduction and depreciation, as a move towards reforming the country's tax regime.
Indian companies today pay 30 per cent corporate tax on their profits, besides 3 to 4 per cent points each as dividend distribution tax and FBT.