Direct Tax Code
The Government of India is in the process of revising, consolidating and simplifying the language and structure of the direct tax laws into a single legislation – the Direct Taxes Code (DTC). In furtherance of this tax reform initiatives objective, a draft DTC along with a discussion paper was first released on 12 August 2009, for public comments. Based on feedback from various stakeholders, the Government released a Revised Discussion Paper (RDP) on 15 June 2010 addressing 11 of the major identified issues. The RDP was also available for public comments for a brief period up to 30 June 2010.
The Direct Taxes Code 2010 was placed before the Indian Parliament on 30 August 2010, after it is approved by both houses of the Indian parliament, and receives the President’s assent, it would be enacted as law. The implementation of the DTC is now deferred to by a year to 1 April 2012.
The DTC 2010 proposes substantial changes to the current direct tax legislation and is likely to have significant impact on the business community. It is widely expected that the DTC 2010 would be referred to a Parliamentary Committee for further deliberations and the Committee would have one more round of public consultation.
Ernst & Young and the Direct Tax Code 2010
Ernst & Young has been closely involved in the DTC initiative through its Tax Policy Advisory Group - a specialized team of experienced professionals, including former government officials, who advises businesses as well as governments on diverse policy issues, focusing on taxation.
Ernst & Young can thus provide you the perspective and support that you need to understand the potential impact of the DTC 2010 on your business.
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