Purchase of items in excess of two-and-half times the income filed under annual information return (AIR) may become one of the criteria for selecting cases for scrutiny assessment by the income tax department.
Expects exemption of oil and gas profits from minimum alternate tax and all cess in the nature of excise duty are to be subsumed in GST.
Full exemption for all health insurance premiums and reinsurance or a reduction in the GST rate from 18% to 5% on health insurance services is likely.
The 30-share Sensex dropped 155 points to end at 27,735.
Face Rs 1,000-cr minimum alternate tax demand
Highlights of the announcements made by Finance Minister Nirmala Sitharaman on the reduction in corporate tax and other fiscal relief measures for the economy to promote growth and investment.
Companies pay MAT on the book profits that do not come under the tax net because of various exemptions and incentives.
Credit-focused SIFs with lower minimum investment thresholds can provide a more practical option for investors with higher risk appetite, suggests Subodh Rai.
Exemption from minimum alternate tax for REITs & infrastructure investment trusts; Depository receipts on all securities eligible for tax benefit
Even domestic income can be subjected to scrutiny by the taxman.
More developers may withdraw their special economic zones projects, as they lose tax-free status with imposition of minimum alternate tax and further burden through direct tax code, Export Promotion Council for Export-oriented Units and and SEZs said.
Ninety-nine companies, which also include some unlisted ones, have more than Rs 100 crore each of minimum alternate tax credit on their books, cumulatively adding up to Rs 75,000 crore. By utilising MAT credit, many companies will be able to bring down their effective tax cost.
Taxmen also claimed that the signature of Siddhartha on the letter being circulated on the social media under his name "does not match" with the record available with the department.
The government will come out with new guidelines to revive export hubs, special economic zones (SEZs), which have lost sheen after imposition of certain levies and proposal to take away tax incentives.
One of India Inc's top demands is the abolishing of the MAT.
The Budget, by itself, has a limited ability to finance the country's infrastructure needs. However, its ability to create an enabling environment for raising capital and project development is increasing.
Natural gas/Liquefied Natural Gas imported for power generation by a power generation company is being fully exempted from basic customs duty Budget provisions.
The revenue department had sent notices to FIIs demanding 20 per cent MAT
In the wake of the Union Budget proposals, developers of Special Economic Zones (SEZs) say the scheme is heading for an end, with investors' interest certain to reduce drastically.
Software body Nasscom expressed its disappointment over the budget as it has no fresh proposals for the USD 100 billion Indian IT-BPO sector even as the industry's request to exempt SEZ income from Minimum Alternative Tax has been ignored.
The levy of service tax for transport of goods by rail, transport of cargo, goods through inland water including national waterways will hike the transport cost.
The government on Monday proposed to levy Minimum Alternate Tax (MAT) of 18.5 per cent on the book profits of Special Economic Zone developers and units, which was termed as a 'setback' by the players.
The government's proposal to compute minimum alternate tax on profits, and not on assets as planned originally in the direct taxes code, has put a smile on the face of industry.
Pranab Mukherjee touched upon the problems and the initiatives needed to spur Indian Economy, but there is hardly anything on table for the industry to cheer about.
With the introduction of CTT, commodity players raise their doubts about the fledgling futures market.
Unveiling the Budget for 2009-10, Finance Minister Pranab Mukherjee said, "MAT was introduced to address inequity in taxation of corporate taxpayers. In the quest for greater equity, I propose to increase the rate of MAT to 15 per cent of book profit from the present rate of 10 per cent."
The software industry on Friday hit out at the government for increasing the minimum alternate tax and for ignoring the industry's plea for extending STPI scheme which would have continued to give tax breaks.
The Union Budget 2009-10 has proposed to extend the terminal date for starting the power generation by cogen plant by one more year.
The dyestuff industry is at a threshold of momentous change.
India Inc on Monday welcomed the focus on reviving economic growth to nine per cent as also the indications for bold tax reforms, but expressed regret that the Minimum Alternate Tax was raised and Security Transaction Tax was let to continue.
The higher MAT and confusion over whether its gas is eligible for a tax holiday have hurt the stock.
The hike in MAT will not be earnings dilutive but will only be cash flow dilutive.
Electric power is the key input required for manufacture of caustic soda and accounts for almost 60% of the total cost of production.
Industry body Assocham has sought elimination of Minimum Alternate Tax saying that it was coming in the way of growth of companies and inflow of foreign capital.
Insurance firms and non-banking finance companies are heaving a sigh of relief as the revised draft of the Direct Taxes Code has suggested that book profits rather than gross assets be used to calculate the minimum alternate tax, or MAT, for both groups.
'Depreciation should be claimed on original book value, not after revaluation'.
Some chlor alkali producers using naphtha as feedstock for captive power plant will benefit from cut in the excise duty on naphtha from 16% to 14%.
The excise duty was increased on bulk drugs and intermediates from 8% to 10%, but fortunately the excise duty on formulations remains at 4%.
In May 2014, FIIs were net buyers by Rs 20,225 crore (Rs 202.25 billion).
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