Businesses across the nation are changing with the fast pace with innumerable advancement in terms of technology, market size, and taxes. Mergers and Acquisition are gaining its popularity with an increased number of Businesses and Private corporate house. This in return is putting India into many challenges in regards to taxation which requires sustainable changes to the tax structure. The recent ‘India Tax Talks’, focused on various aspects of taxation such as tax professionals, policy makers, tax changes, tax regulation, and academia. With the motive to bring some significant formulation in taxation framework, the discussion was made among industry leaders to know their top expectation on tax laws, an adaptation of world-class taxation standard, and mergers & Acquisitions.
The discussion area catered around the need of the Indian taxation system, expectation, reformation, shortcomings, etc. The industry leaders also spoke at length about the insolvency and bankruptcy code, and what was required to make the processes smooth. The major expectation of industry leaders on the taxation framework is predictability, simplicity, and transparency since taxation is the important bearing in the decision making.
1. Predictability Creating value for all the stakeholder can be of great help in the taxation framework. Taxation for startups was also an important part of the discussion and pointed out about an inconsistency. The startups business have been given tax exemptions under 8iiC, however, there is no exemption from minimum alternate tax. Therefore, while they are not accountable to pay tax at 25%, they would finish up paying or getting out of cash to the level of minimum alternate tax; that is an anomaly again.
2. Simplicity According to Industry leader expectation, simplicity in taxation framework can be in prime focus. Also, to ensure that the timelines are perfectly met both from the regulators and authorities within the IBC space. The capacity in terms of authorities such as the NCLAT, the NCLT needs to be expanded in regards to benches. Both the benches had to ensure the adherence to high recovery rate, system, and timelines in terms of dollars.
3. Transparency A globalized India requires group taxation. Many countries have already taken the step which has proved to be of huge success. According to the industry leaders, there should be more transparency in taxation framework to ensure more flexibility, reliability, loyalty, etc. There is so much focus on ease of doing business and it is high time that we should look at group taxation to clearly expect a great easing of administrative burden.
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