The Government of India (GOI) had released a draft Direct Taxes Code (DTC) along with a Discussion Paper in August 2009 for public comments. Since then, a number of inputs on the proposals outlined in these documents have been received from a large number of organizations and individuals. These inputs have been examined and major issues on which various stakeholders have given their views have been identified. The GOI, today, on 15 June 2010, has released a Revised Discussion Paper (RDP) that addresses these major issues. The issues addressed in the RDP are :
Each of the chapters in the RDP describes the DTC proposal, highlights the issues and concerns and details the revised proposals in response to these concerns. This RDP is available on the following websites:
The GOI has indicated that responses to the RDP are invited up to 30 June 2010.
An initial review of the revised proposals in the RDP suggest that a number of concerns expressed by various stakeholders have been given due consideration by the GOI. For example, the RDP proposes to continue with the existing system of levying MAT on book profits rather than tax on gross assets as proposed in the DTC. Similarly, the proposal on ‘treaty override’ has been limited largely to anti-avoidance cases. The proposal to introduce GAAR continues, but with more safeguards. The RDP also suggests that a Controlled Foreign Company regime may be introduced.