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Discussions on to drop corporate tax concession proposed in DESH bill

india | Dec 21, 2022 10:18 PM IST

Discussions on to drop corporate tax concession proposed in DESH bill

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The government sources indicated that discussions are currently underway between the Ministry of Commerce & Industry and the Revenue Department, efforts are being made to resolve the differences on aspects of taxation related to the proposed bill. The ongoing discussions also include demands to drop corporate tax concession in the proposed bill.

The Ministry of Commerce and Industry will try to introduce the proposed DESH (The Development of Enterprises and Services Hub) Bill in the budget session of Parliament, government sources have said.

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Discussions are currently underway between the Ministry of Commerce & Industry and the Revenue Department, efforts are being made to resolve the differences on aspects of taxation related to the proposed bill, they said.  The ongoing discussions also include demands to drop corporate tax concession in the proposed bill.
Earlier, the Union Ministry for Finance had expressed its objections to the proposed extension of the 15 percent corporate tax rate till 2032.
While both the ministries are considering changes to the DESH bill to give a greater push to exports, the Commerce Ministry is keen on exempting SEZs (Special Economic Zones) from the Net Foreign Exchange evaluation criteria despite objections raised by the Union Finance Ministry and the NITI Aayog.
On December 8, 2022, Centre had amended the existing SEZ Rules to allow WFH (work-from-home) for IT, ITeS, travelling employees and those working offsite till December 31, 2023.
Despite noting the need to use the built-up infrastructure in SEZs, government sources explained that the decision was taken in view of the need to recognise that hybrid working is the new norm in the IT sector and decisions like WFH for employees should be taken by companies based on their needs of business instead of a government order.
The 8th December order also waived the requirement for companies to submit lists of employees working from home, yet asked them to maintain a database to be submitted to Development Commissioner for verification whenever required. Explaining the rationale behind this move, sources said that some accountability is needed for certain units in SEZs which use duty free goods.
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