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New Direct Taxes Code Bills

CA. Aashu (Chartered Accountant) (307 Points)

20 August 2009

Whether the New Direct Taxes Code Bills will be Beneficial for all sector????

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Aditya Maheshwari (CA in Practice) (35867 Points)
Replied 21 August 2009

The 2% MAT on assets seems to be a negative point in case of investment companies and also companies making losses. Views of others are also invited.

N.Naveena Maheswara Rao (Assistant manager for accounts) (1096 Points)
Replied 21 August 2009

thanks for the information

Ashish M (Chartered Accountant) (2731 Points)
Replied 21 August 2009

Yes certainly,. It will not only make the company to resist building assets, as the MAT is a final tax and no credit is allowed. I think Mat should be on the basis of sum assumed income of the company. various quators of the industries has pointed out chinks in this policy, i hope, this provision will be passed in some modified form. Taxing income on the basis of asset is not a sound practice. though the finance ministry's view that this will make the compnay to earn a minimum profit based upon its assets do holds water, but it has to be seen within hte global scenario.......company's can't fend for themselves, govt. has to extend tax incentives and breaks for certain industries to grow..........