Headline news
- The 53rd GST council meeting was held on June 22nd bringing in significant announcements & key advocacy wins for the Tax Forum. Tax forum did an online session on key announcements with our knowledge partners Deloitte India. Access the press release here , summary of the key updates here.
Income Tax
Focused advocacy on:
- the need to reassess Angel Tax provisions.
- clarity on Employee Stock Ownership Plan taxability in India
- need for reciprocal tax treatment upon reorganisation of foreign regulated funds investing in Indian securities as given in the home country of such fund
- need for corporate tax parity for foreign banks operating as branches in India
- request for release of notification for enforcement of Most Favoured Nation clause in specific bilateral treaties
- request to extend benefit available to companies under section 115BAB specifically for manufacturing of automobile industry products, renewable generation projects such as solar power, wind power, hybrid power, green hydrogen, green ammonia
- transfer pricing issues such as mark-up relating to share-based payments made to Indian employees, secondary adjustments rationalisation, safe harbour rules etc.
GST
- Forum to submit feedback on legislative and procedural amendments proposed in the 53rd GST council meeting.
- Findings of the USISPF supported Deloitte’s survey on GST@7 can be accessed here.
Customs
- Tax forum submitted industry recommendations on Draft Central Excise Bill, 2024 to the Central Board of Indirect Taxes & Customs – June 26
- Ongoing advocacy on:
- use of different Harmonized System of Nomenclature for different categories of medical devices
- addressing general and technical issues arising from interpretation of Circular No. 08/2023 regarding classification of telecom products
- Customs (Administration of Rules of Origin under Trade Agreements) Rules, 2020 (CAROTAR) implementation issues across sectors
- addressing issues in availing benefits under the Remission of Duties and Taxes on Exported Products scheme with Directorate General of Foreign Trade
- pursuing exemption for specific sectors such as solar modules, pharmaceuticals, certain medical devices from the application of amendments to Manufacturing & Other Operations in Warehouse Regulation scheme
Ease of doing business challenges
- Continued advocacy around liberalisation of export control norms pertaining to Special Chemicals, Organisms, Materials, Equipment and Technologies (SCOMET) license.
- Representation with Department for Promotion of Industry and Internal Trade to address industry wide issues in implementing Quality Control Orders
- Forum to share issues and feedback regarding Special Economic Zone laws with Department for Promotion of Industry and International Trade, Ministry of Commerce based on inputs received from members
- Tax forum to initiate advocacy on tax issues pertaining to semiconductors industry. To share your inputs, please write to @Shreeya Kashyap or @Prabhat Agrawal
- Addressing issues in obtaining refunds under the erstwhile Service Exports from India Scheme
Others
- Further to forum’s advocacy efforts, Commissioner of the customs, Jawaharlal Nehru Customs House issued revised guidelines streamlining verification of certificate of origin with third-party invoicing under Free Trade Agreement claims. Public Notice available here.
- Ministry of Finance extends validity of India & USA Transitional Approach on Equalisation Levy 2020 until June 30, 2024. Please access the press release here
- USISPF –EY joint report on the Impact of new GST law on skill-based online games. Please access the report here
- USISPF report on Ease of Doing Business in the Telecom Sector
- USISPF whitepaper on multilateral framework for international tax cooperation
- USISPF to launch report on trade facilitation measures for Authorised Economic Operators
