Mukherjee to discuss direct tax code with biz chambers

Last Updated: Tuesday, September 22, 2009 - 17:52

New Delhi: Finance Minister Pranab Mukherjee
will meet leading industry chambers here on October 9 to
discuss issues arising out of the proposed new direct tax
regime.

The three industry bodies, CII, FICCI and Assocham are
expected to take a common stand on the different contentious
issues that will confront the businesses once the new direct
tax code comes into effect.

It is proposed in the draft code that minimum alternate
tax (MAT) of 2 per cent would apply on the gross asset value
of a company instead of current levy of 15 per cent on book
profits.

The industry is believed to be opposed to this draft
provision on the ground that it would have to pay MAT from the
day it acquires both movable and immovable assets.

Last month, the government released the direct tax code
for public discourse and when approved by parliament it would
replace the Income Tax Act of 1961 and other related laws.

The draft tax code also suggests abolishing the
controversial securities transaction tax but seeks to
reintroduce long-term capital gains tax.

Bureau Report



First Published: Tuesday, September 22, 2009 - 17:52
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