“The tax law in the Bill should be more liberal than what it is today. Controlled Foreign Company (CFC) legislation either has to be deferred in implementation or else it should be made less rigorous,” said Deloitte India Tax Partner-Outbound Services Vipul Jhaveri. The DTC Bill has spelt out conditions for treating a company as a subsidiary of a foreign company, or as a CFC, for tax purposes.
Jhaveri said the proposed legislation could even lead to double taxation.
(Published 26 September 2010, 15:16 IST)
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