| Coal India Limited (CIL) expects to save Rs 200 crore annually as under the 2008-09 budget, dividend distribution tax (DDT) will be charged on holding companies for once.
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| Till date, double taxation ate into dividends paid by CIL and its subsidiaries on dividends.
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| CIL chairman Partha S Bhattacharya, a public sector manager, claimed, "CIL will pay DDT to the government only once. This would help save Rs 200 crore annually."
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| Earlier, a subsidiary used to pay dividend to CIL and pay tax on that.
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| CIL then paid dividend to government and paid tax on it again.
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| Bhattacharya said, "The one time payment of DDT is a specific advantage for Coal India and we are welcoming the budget whole heartedly".
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| As for the government's decision of setting up a regulator for the Coal Industry as part of the budgetary exercise, Bhattacharya welcomed the move as a "step in the right direction".
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| He claimed a coal regulator was needed as private players were entering the coal space.
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| The regulator will provide a level playing field for both the public and private enterprises.
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| Bhattacharya expected the coal regulator to ensure scientific mining and conservation of coal and aspects relating to environmental preservation and sustainable social development.
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| The coal regulator would ensure safety of coal miners along with formulation of an equitable and fair wage policy, he claimed.
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| The CIL chairman said he was upbeat about the taxation procedures announced by the government and the skill upgradation programmes laid out for attaining global standards. |
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