sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
General »
  E commerce companies set to collect tax from sellers
 Income tax return (ITR) filing: EPF gives you tax benefit under section 80C, but there is catch
 Finance ministry notifies annual tax return forms for businesses registered under GST
 ITR filing: Use this last day checklist and avoid penalty
 Income tax return filing 2018: Claiming foreign tax credit – how to deal with practical challenges
 Are you liable to pay tax on money received as gift?
 What are the Income Tax benefits to donors of Kerala flood victims?
 Here’s how you can reduce your taxes on pension income
 How to reset password on income tax e-filing website
 Income tax returns (ITR) filing: Taxpayers must include assets while filing tax if earnings overshoot mark
 No penalty on late filing of ITR if your income doesn't cross this limit

Waive certain taxes for companies in insolvency proceeding
September, 14th 2017

Industry body Assocham today sought from the government slew of tax relief for companies against whom insolvency proceedings have been initiated.
"Where any outstanding liability, inclusive of any accrued interest is waived in accordance with the approved Resolution Plan, such waiver/write-back should not be subject to tax under both normal and Minimum Alternate Tax (MAT) provisions of the Income-tax Act, 1961," Assocham said in a letter to Central Board of Direct Taxes (CBDT).

The chamber has also sought exemption from Section 50CA of the I-T Act for the companies which are being revived under the Insolvency and Bankruptcy Code (IBC).

This section provides that the computation of capital gains would be done on the basis of fair value of the shares of the company even if these are transferred under the IBC package below the fair value.

Since MAT was not payable by a sick company on its book profits from the year in which it became sick, it is recommended that similar reliefs should be extended to the corporate debtor after the approved Resolution Plan is effected.

In the letter marked to the Financial Services Department as well as MCA, Assocham also sought that companies against whom insolvency proceedings have been approved by the NCLT, they should be exempt from the General Anti Avoidance Rules (GAAR) provisions.

The resolution plans approved after factoring in these reliefs/concessions will result in quick revival of assets, freeing up liquidity for banks for further lending, increased economic activity, job creation, increased contribution to the exchequer and will have multiplier effect on the associated economy, Assocham said.

"A quick and timely resolution to the stressed assets with positive outcome implemented in a transparent manner will improve India's 'Doing Business' ranking thereby ensuring participation from global players and resultant capital inflows," Assocham Secretary General D S Rawat said.

Currently, non-performing loan resolution process is going on for 12 companies and this represent 25 per cent of total bad loans in the system NPLs.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
E-catalogue online catalogue E-brochure online brochure online product catalogue online product catalogue e-catalogue Indi

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions