New Delhi: Finance Minister Pranab Mukherjee
today said the proposed Direct Taxes Code (DTC) will address
the issues like MAT on gross assets, shift to new method of
taxation on savings, exemptions on home loans and also
taxation of foreign companies.
"The government will take inputs from various
stakeholders before giving the final shape to Direct Taxes
Code," Mukherjee said while addressing the second meeting of
the Parliamentary consultative committee attached to his
ministry.
Significantly, the DTC is silent on the existing
exemption given to housing loans.
Mukherjee said the tax code is aimed at giving a
competitive edge to the country while dealing with
international taxation issues.
In the Code there is also a provision for advance pricing
agreement (APA). This mechanism has been proposed to bring
certainty and stability in the taxation of cross-border
transactions. That apart, the dispute resolution panel (DRP),
already introduced with effect from October 1 this year for
disputes relating to transfer pricing along with APA, would
provide a fiscal environment conducive for foreign investments
in the country, he pointed out.
The DTC proposes to tax all savings schemes at the
time of withdrawal by the subscriber, as against the current
practice of exempting withdrawals of schemes like Employees
Provident Fund, General Provident Fund and Public Provident
Fund.
Apart from Mukherjee, Minister of State for Finance
Namo Narain Meena, Finance Secretary, Revenue Secretary,
Expenditure Secretary, Disinvestment Secretary and other
senior officers of the ministry attended the meeting along
with panel members from the Rajya Sabha and Lok Sabha.
PTI
First Published: Wednesday, December 16, 2009, 22:55