Budget 2017: Why these five tax rules spook corporate India

What the Budget could hold in store when it comes to tax rules like GAAR, MAT, PoEM, BEPS and ICDS

Budget 2017 is likely to clarify the government’s position on Minimum Alternative Tax (MAT), General Anti Avoidance Rules (GAAR), Place of Effective Management (PoEM), Base Erosion and Profit Shifting (BEPS) and Income Computation & Disclosure Standards (ICDS), writes Sudipto Dey.

MAT impact on IND-AS conversion  

Background

From April 2016, companies with net worth of Rs 500 and above began re-stating their accounting numbers in IFRS-compliant Indian Accounting Standards (Ind-AS). This will be mandatorily extended to companies with net worth greater than Rs 250 crore from April 2017.  

Ind-AS is largely based on fair-value accounting. This involves accounting