Page 4 - Tax Reforms

Direct tax code panel calls for branch profit tax on foreign companies

Suggests bringing corporation tax rate on a par with domestic companies

Managing offshore funds from India needs tax reforms

The private equity industry is largely not expected to benefit as yet from the safe harbour rules

Wider tax net

But immunity schemes yield insignificant benefits

Letters: Follow guidelines

With reference to the editorial, "Hasten tax reforms" (June 21), while unnecessary appeals must be avoided, the suggestion for abolishing revenue collection targets is neither possible nor desirable.A finance minister should necessarily undertake a comprehensive exercise of arriving at an estimated revenue, both from tax and non-tax sources vis-a vis the estimated expenditure in the ensuing financial year, while presenting his annual Budget. However, it is erroneous to assume that such an estimate will remain unchanged during the entire year. Depending on the trend of revenue collection and relevant factors, such targets are periodically revised by the Department of Revenue.The observation that "it is time the revenue department used more data instead of using blunt methods of harassment" is too sweeping, uncharitable and contrary to facts. While there could be instances of the department raising untenable demands, these are exceptions rather than the norm. Often such demands are issue

Hasten tax reforms

Abolish revenue collection targets & avoid unnecessary appeals