The Confederation of Indian Industry (CII) has called for tax reforms in order to reduce the complications and unproductive time spent by the industry in tax filing. CII has recommended for one rate of corporate tax rather than many cesses and surcharge. Moreover, it has also suggested the abolition of surcharge and cess levied on corporate tax.
"To reduce complications and unproductive time spent by industry in tax filing, it is more efficient to have one rate of corporate tax rather than many cesses and surcharge," CII said in a statement.
Moreover "A component of corporate tax can be set aside for supporting the education needs of the country, without having a separate levy.
In other words, the rates need to be collapsed into the single corporate tax rate," it added.
Besides this, CII also suggested that the rate of depreciation in case of plant and machinery be raised to 25% from 15% and allow full depreciation on assets that have limited life and small costs upto Rs25,000.
Moreover, CII has also recommended bringing ''Goodwill'' under the purview of intangible assets in order to be eligible for depreciation.
It has asked for the restoration of the depreciation rate applicable to hotel buildings to 20% from 10% currently.
Along with this, CII also called for ending the multiple taxation on dividend distribution by a corporate group and its subsidiary.
It recommended that dividends received from overseas entities in the form of convertible foreign exchange in India should be fully exempted.
"To reduce complications and unproductive time spent by industry in tax filing, it is more efficient to have one rate of corporate tax rather than many cesses and surcharge," CII said in a statement.
Moreover "A component of corporate tax can be set aside for supporting the education needs of the country, without having a separate levy.
In other words, the rates need to be collapsed into the single corporate tax rate," it added.
Besides this, CII also suggested that the rate of depreciation in case of plant and machinery be raised to 25% from 15% and allow full depreciation on assets that have limited life and small costs upto Rs25,000.
Moreover, CII has also recommended bringing ''Goodwill'' under the purview of intangible assets in order to be eligible for depreciation.
It has asked for the restoration of the depreciation rate applicable to hotel buildings to 20% from 10% currently.
Along with this, CII also called for ending the multiple taxation on dividend distribution by a corporate group and its subsidiary.
It recommended that dividends received from overseas entities in the form of convertible foreign exchange in India should be fully exempted.
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