Rationalized taxation regime and easy compliance environment crucial to promote ease of doing business: PHD Chamber
The webinar was concluded with an extensive discussion of around 2.5 hours with a participation of around 120 delegates
New Delhi: Eminent experts in the field of taxation extensively discussed the Recent Changes to the Income Tax Act- TCS on Foreign Remittances & Sale of Goods, TDS on E-Commerce Operators and Equalisation Levy in the webinar organized by PHD Chamber of Commerce and Industry.
The objective of the Webinar was to discuss the recent changes in Income Tax Act consisting of Provisions of TCS on Foreign Remittances & Sale of Goods, TDS on E-Commerce Operators, Equalisation Levy and other pertinent issues and its implications on industry stakeholders along with suggestions for relaxations from the Government in these extremely difficult times of pandemic COVID-19.
Shri Pradeep Multani, Vice President, PHD Chamber stated that growing severity of the impact caused by the widespread pandemic COVID-19 on our economy, people and the Nation as a whole is a matter of deep concern. However, proactive measures by the Government to contain the spread of pandemic COVID-19 are highly appreciable in this extremely difficult time. He mentioned that the Government is committed to provide a hassle free direct tax environment with moderate tax rate and ease of compliance to the taxpayers and also to stimulate the growth by reforming the direct taxes system.
Mr. Anil Kumar Chopra, Mentor, Direct Taxes Committee, PHDCCI gave his theme presentation on recent changes to the Income Tax Act, Obstacles to Ease of Doing Business. He said that all the due and fair taxes need to be collected, this will lead to removal of hardships and provide ease of compliance to the taxpayers. He explained that India as a country should get its fair share in respect of tax on international transaction. He highlighted that clarity and certainty in tax laws will avoid litigations, so the FAQs released by the Government must focuses on providing clarity and certainty to the assessee. He also explained the details of tax collection at source on remittance under Liberalised Remittance Scheme of Reserve Bank of India exceeding seven lakh rupees.
Mr. Mukul Bagla, Chairman, Direct Taxes Committee, PHDCCI in his address apprised about the provisions of TCS on Foreign Remittances & Sale of Goods. He said that PHD Chamber had expressed serious concern when the provisions were first introduced in the Budget 2020. He apprised that representations in this context were sent to Hon'ble CBDT Chairman also. He accentuated that such provisions have far reaching effect on the liquidity of remitter as well and will result in unnecessary document preparation at the end of remitter. He explained that it is the taxpayer's own money which is remitted abroad on which he has already paid taxes, therefore there is no rationale in again collecting tax on the same. He further mentioned that the rate of TCS is very high, rate may be substantially lowered from 5% to 1% or so. He requested the concerned department for substantial reduction in the rate of TCS.
Mr. Ashish Ghosh, Co-Chairman, Direct Taxes Committee, PHDCCI mentioned that to curb the tax evasion and widen the tax base the government is regularly introducing various compliances and statutory requirements on businesses. He proposed a formal vote of thanks to the esteemed speakers and delegates.
Mr. Ravi Bhatia, Co-Chairman, Direct Taxes Committee, PHDCCI moderated the Q & A Session and suggested some relief measures for ease of doing business which can support and boost the confidence of businesses in these extremely difficult times.
Mr. Ajay Wadhwa, President, ITAT Bar Council, New Delhi through his presentation on "TCS on Foreign Remittances & Sale of Goods" apprised that the newly inserted TCS provisions are applicable from 01.10.2020. He gave a detailed presentation showing clarifications and problems on the new aspects of collection of Tax at Source.
Mr. Naveen Aggarwal, Partner- Corporate & International Tax, KPMG through his presentation on "TDS on E-Commerce Operators" explained that Section 194-O of Income Tax Act was introduced to widen and deepen the withholding tax net by bringing resident e-commerce participants within its ambit. He further explained the Key definitions of Electronic commerce, E-commerce operator and E-commerce participant to the delegates.
Mr. Sameer Gogia, Director, Global Business Tax, Deloitte Haskins & Sells through his presentation on "Equalisation Levy" explained the key features of new equalization levy and the issues faced by the taxpayers. He apprised that there are no definitions of the terms "digital facility", "electronic facility" and platform" under the EL provisions.
Dr. S P Sharma, Chief Economist, PHDCCI moderated the webinar and mentioned that the ongoing implementation of reforms by the Government will have a positive impact on boosting sentiments of businesses and economic activities in the coming times.
The webinar was concluded with an extensive discussion of around 2.5 hours with a participation of around 120 delegates.