tag:blogger.com,1999:blog-19649274.post5802023059550423912..comments2024-03-27T17:16:12.789+05:30Comments on The Leap Blog: Para 173 of the budget speech is 100% wrongAjay Shahhttp://www.blogger.com/profile/03835842741008200034noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-19649274.post-68133820120108486032007-03-08T00:10:00.000+05:302007-03-08T00:10:00.000+05:30"the government is playing god on which industries..."the government is playing god on which industries should receive investment."<BR/><BR/>Really? But our government is so good at it. Instead of making substantive investment, FDI and divestment, policy decisions, Chidambaram was just using up his time. Overall it was a pretty lame budget.Chandrahttps://www.blogger.com/profile/04763671243428875888noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-44169808395905047642007-03-07T17:23:00.000+05:302007-03-07T17:23:00.000+05:30I hope PC is reading your mail, as this is a perni...I hope PC is reading your mail, as this is a pernicious development in the alternative asset management arena of the country. <BR/><BR/>But, I would like to do a little bit of hair splitting here and state that theoretically the withdrawal of 10(23)(FB) does not mean double taxation. In fact there are other sections in the IT act (sec 160-164 and sec 61 read with 63) which envisages to give pass through status to trust funds. Parts of the PE funds are established under these sections and hope to get the said benefits, if they can be called benefits at all.<BR/><BR/>However, what will happen is a vitiation of the tax environment. As it is, our experience is that most of the asessment officers fid it difficult to comprehend the principle of pass through and carried interest of the funds. After this budget, even if it is legit to avoid double taxation, getting the tax credit in the hands of the investors will be a very stiff challenge.comingtotermshttps://www.blogger.com/profile/18009061085912035157noreply@blogger.comtag:blogger.com,1999:blog-19649274.post-86875851761990993572007-03-07T10:11:00.000+05:302007-03-07T10:11:00.000+05:30Is that only para you find objectionable? what abo...Is that only para you find objectionable? what about the dual tax structure, and esops being bracketed as a fringe benefit to be taxed in the hands of the company?! and I cannot believe the asinine thought of ranking rent from commercial premises as a service. Will that not be economically speaking, a return on capital? All this arm twisting of cement and steel manufacturers to make them confirm is so disappointing. What signals are we sending out? I don't think the ministry is aware of expectations theory at all.Anonymousnoreply@blogger.com