The government has charted a plan to ensure that India can grow at seven to eight per cent annually in the next decade, said Jayant Sinha (pictured), minister of state for finance.
“Our aim is to put the economy on a sustainable, non-inflationary and high-growth trajectory. If we grow at around seven per cent a year, the size of our economy will double in the next 10 years. So, our $2-trillion economy will become $4 trillion,” Sinha said at the Mumbai Next MMR Transformation Conclave here on Friday.
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Companies had listed taxation-related hurdles as one of the top barriers in the way of making India a global financial hub. Experts said to improve the pace of development, steps have to be taken to ensure capital coming into India can be deployed with convenience.
The issue of taxation on permanent establishments has been settled to make the business environment more conducive, the minister said. “You can absolutely invest without generating any taxes. There has been a CBDT (Central Board of Direct Taxes) circular in this regard,” said Sinha.
A permanent establishment is a fixed place of doing business, through which a company or entity can carry out a business via a branch, representative office or a subsidiary entity. Typically, the local tax authorities assess corporate tax on deemed revenue arising in-country.