Finance Bill 2012: Foreign industry bodies seek more clarity
India ran out of warehouse space to hold another bumper crop, a core problem of the nation's food crisis.
Ten overseas associations, including USIBC and USCC, in a letter to Finance Minister Pranab Mukherjee have sought further confirmation that Finance Bill, 2012 will not override India's DTAAs.
The associations said that Mukherjee's May 7 statement in the Lok Sabha "helpfully confirms" that the indirect transfer provisions of the bill will not be applied to override the provisions of the Double Taxation Avoidance Agreements (DTAAs) that India currently has in place with 82 countries.
"We would appreciate further confirmation that the other provisions of the Finance Bill, 2012 will, similarly, not be applied to override the provisions of any of India's DTAAs, including any future DTAAs or amendments to DTAAs currently in force," the letter said.
The Bill was passed by the Lok Sabha on May 8. The letter said that from the perspective of global companies a predictable and transparent tax regime is essential to operating and investing in India and to the efficient functioning of capital markets.
"Only clear, consistent rules that adhere to international norms and practices will fully allay current fears regarding the investment climate in India," it added.
The letter has been jointly written by 10 organisations, including US-India Business Council (USIBC), Emergency Committee for American Trade, National Foreign Trade Council and US Chamber of Commerce (USCC).
Members of the associations are primarily global corporations with long-term investments and economic presence in India.