Even though the ministry announced the DTC to simplify and make IT returns litigation free, most of the provision are criticised because of lack of clarity and give scope for litigation in future. According to KPMG partner K R Girish, there is a drastic deviation from the direct tax roadmap put forward by the Kelkar Commission in the new code.
“The new move to bring in tax clearance certificate for business men before leaving the country will adversely affect the investment prospect in the country,” he said, adding “There is a marked mismatch between the government’s economic policy and the provisions in the new tax code. This will give a bad name for our country overseas.”
He also criticised the move to replace MAT with the regressive gross asset tax. It was also pointed out that the government’s move to do away with the tax benefit prescribed under the SEZ will be infringed by the new provision in the DTC because they undersize such provision in the bill.
Participants also criticised the new law to tax NGOs who are doing well in the country. “It is a retrograde move to tax 15 per cent of the unutilised assets of NGOs in the country who have done exemplary work in the socio-economic upliftment of the people of our country,” said Hitesh Gajaria from KPMG.
