The countdown to the Union Budget, one of the most critical event for the Modi government, has started. With barely 10 days before the macro event, expectations are sky-high ranging from clarity on goods and services tax (GST), expanding tax base, corporate tax, etc.
In an interview to CNBC-TV18, Sudhir Kapadia, National Tax Leader, EY says he expects the Finance Minister Arun Jaitley to announce the exemption of minimum alternate tax (MAT) from both foreign institutional investors (FIIs) and foreign portfolio investors (FPIs).
“The intent is not to create books of accounts in India and include it in the tax net. So, why should there be a need to set up offshore accounts of these companies if we don’t need their taxable presence,” asks Kapadia.
Furthermore, he believes the corporate tax rate should come down to 30 percent from the existing 33.99 percent.
Sachin Menon, COO-Head Indirect Tax, KPMG and Dinesh Kanabar, CEO, Dhruva Advisors, say a clear roadmap on GST and revision in exemption limits can be expected from the upcoming Budget.