Financial Daily from THE HINDU group of publications
Saturday, Mar 05, 2005
Financial Daily from THE HINDU group of publications Saturday, Mar 05, 2005 |
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Budget Industry & Economy - Income Tax Industry can help in framing fringe benefit tax rules: Chidambaram Our Bureau
New Delhi , March 4 THE special purpose vehicle (SPV) to be set up to finance infrastructure projects in specified sectors is expected to be "up and running" in next 4-6 weeks, said the Finance Minister, Mr P. Chidambaram. Addressing an interactive post-Budget meeting organised by CII, he invited industry to work with the Revenue Department for framing the rules on fringe benefit tax besides ensuring that legitimate business expenditure is not brought within the ambit of this tax. "The fringe benefit tax will stay. It will not go away. There is no relenting on the principle that fringe benefit should be taxed. But you can help us in improving the language of the chapter on fringe benefit tax and in having clear rules." Elaborating on the SPV, Mr Chidambaram said that approved projects in the public and private sectors and also those of public-private partnerships could access long-term debt funds from the SPV. Stating that the SPV would be a shell company, Mr Chidambaram said that it would raise Rs 10,000 crore of long-term rupee resources. The Finance Minister also said that forex reserves of $2-3 billion could be drawn down for financing necessary imports in certain import-intensive projects. On the excise front, Mr Chidambaram sought industry help to ensure that there is no leakage of excise revenue. "I want Infosys, Wipro or TCS or anybody else to suggest a system whereby the Government could get periodic online reports on production levels of the nearly 80,000 excise assessees who contribute about 90 per cent of excise revenues. The reports could be on a daily or weekly basis. I am ready to foot the bill for any study."
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