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Ms. Garima Gaur
Deputy Commissioner of Income Tax
(HQ) Coordination,
Mumbai.
Madam,
We thank you for inviting our Chamber for an interactive session with Hon’ble Revenue Secretary, Government of India, Shri Sanjay Malhotra, in the presence of Hon’ble Member (Admin.), Central Board of Direct Taxes, Shri Ravi Agrawal and Hon’ble Pr. Chief Commissioner of Income Tax, Mumbai, Shri Yeshwant U. Chavan on 31st May 2024 at Kautilya Bhavan, Bandra Kurla Complex. The ambience of the venue and quality of hospitality extended to us reflects upon the transformative change in the Income tax Department to provide best-in-class service to the taxpayers.
We commend the consultative approach of the Income tax Department by allowing our delegates to raise policy and administrative issues with the Hon’ble Revenue Secretary and also sharing his candid views on some of the issues. We believe such interactions will greatly help both industry and Government to build trust with each other, improve compliance and “Ease of doing business in India” which will ultimately help in achieving the country’s ambition of becoming “Viksit Bharat”
Considering the time constraint and to avoid repetition of issues raised by other industry and professional bodies, our delegate discussed three issues viz (a) Simplifying domestic TDS/TCS regime (b) Protecting bonafide commercial transactions from normative application of anti-abuse provisions of s.50CA and s.56(2)(x) and (c) Removing uncertainty on application of SC ruling in Nestle’s case on Most Favoured Nation (MFN) clause during the session. The Hon’ble Revenue Secretary specifically requested us to provide a list of bonafide commercial transactions which can be carved out from s.50CA and s.56(2)(x) by issuing necessary notifications.
In response thereto, we are pleased to share a slide deck which captures not only the above issues but also other key issues which were also incidentally raised by other industry and professional bodies during the interactive session. An indicative list of bonafide commercial transactions which can be carved out from s.50CA and s.56(2)(x) by issuing notifications is at Slide 11. In this regard, we would like to reiterate our request that the CBDT may first issue a draft notification for public consultation before issuing the final notification. We request you to kindly forward the attached slide deck to Hon’ble Revenue Secretary and CBDT for their kind consideration.
We thank you once again for the gracious hospitality and look forward to more such interactions with the Income-tax Department.
Thanking you,
With regards
Sandeep Khosla
