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Old 17-06-2010, 06:03 PM
fiftyplus fiftyplus is offline
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Default Direct Tax Code

Perhaps members can comment here on the subject and how it will affect them.

For starters, it is ironic that the DTC which is supposed to be the essence of simplicity has experts scratching their heads.
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Old 17-06-2010, 06:08 PM
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Old 17-06-2010, 08:07 PM
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Quote:
1.5 The DTC proposes to abolish Securities Transaction Tax. Therefore, all capital gains (loss) arising from the transfer of equity shares in a company or units of an equity oriented fund will form part of the computation process described above.

http://finmin.nic.in/dtcode/RevisedDiscussionPaper.pdf


BTW, I don't think we are in the right section of the forum.

Discussion on DTC in chit chat section?
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Old 17-06-2010, 09:28 PM
fiftyplus fiftyplus is offline
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Originally Posted by prasad View Post
http://finmin.nic.in/dtcode/RevisedDiscussionPaper.pdf


BTW, I don't think we are in the right section of the forum.

Discussion on DTC in chit chat section
?

Agreed! But with the way it is being "revised", is it worthy of a more respectable home?
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Old 17-06-2010, 09:46 PM
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Looking away from STT for just a moment:
The brand of equity is suddenly out of fashion
June 17, 2010
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Old 18-06-2010, 09:06 PM
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Originally Posted by prasad View Post
http://finmin.nic.in/dtcode/RevisedDiscussionPaper.pdf

1.5 The DTC proposes to abolish Securities Transaction Tax. Therefore, all capital gains (loss) arising from the transfer of equity shares in a company or units of an equity oriented fund will form part of the computation process described above.


BTW, I don't think we are in the right section of the forum.

Discussion on DTC in chit chat section?

On the other hand, I came across this on page 19/20 here (http://finmin.nic.in/dtcode/RevisedD...ionPaper.pdf):
3.7 Securities Transaction Tax
The Securities Transaction Tax (STT) is a tax on specified transactions and not on income. Accordingly, STT is proposed to be calibrated based on the revised taxation regime for capital gains and flow of funds to the capital market.

(page 19 is the page number of the document; page 20 is what page Adobe Acrobat shows!)

This calibrated STT has been mentioned by quite a few commentators as well.

Simplified?
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Old 18-06-2010, 10:10 PM
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They're trying every trick to bring FIIs under the tax net; but for that STT & STCGT should suffice as most FIIs in Indian mkt are of the short term hedge fund type. Just need to find a way to enforce STCGT on those who currently escape under treaty obligations etc. Would be a wrong move to create a disincentive for the relatively little good quality long term money that comes in & provides the necessary risk capital to our industry.
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Old 19-06-2010, 12:39 AM
rkkarnani rkkarnani is offline
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This is what I wrote to the Finance Minister and Minister of State for Finance :

Quote:
From Ravindra Kumar Karnani <rkkarnani@gmail.com>
to pkm@sansad.nic.in,
palani@sansad.nic.in
date Wed, Jun 16, 2010 at 3:34 PM
subject Direct Tax Code
mailed-by gmail.com
hide details Jun 16 (2 days ago)
The Feed Back Link on Direct Tax Code is not working hence writing to you...

In Chapter V of Revised Discussion Paper of June 2010, Taxation of Capital Gains at Serial 1.5 states that DTC proposes to abolish Securities Transaction Tax. Therefore , all capital gain/loss arising from the transfer of equity shares in a company or units of an equity oriented fund will form part of the computation process described above.

Whereas in the same Chapter at Serial 3.7 Securities Transaction Tax : Under this head it is mentioned that STT is proposed to be calibrated based on the revised taxation regime for Capital gains and flow of funds to the capital market.

Both the above Notes are contra to each other. At one place we talk of Abolishing STT and at another we talk of Calibrating the same.

What exactly is going on in the minds of the Policy makers need to be discussed transparently and remove all ambiguity so as to project a picture that the Government is serious about taking into consideration Public view before finalising the Tax Code and that it is not a case of Public eye-wash.

Thanks and regards,

-Ravindra Kumar Karnani

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Old 19-06-2010, 05:28 AM
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Originally Posted by rkkarnani View Post
This is what I wrote to the Finance Minister and Minister of State for Finance :

one copy to RTI guys please.
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Old 19-06-2010, 08:49 AM
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Originally Posted by rkkarnani View Post
This is what I wrote to the Finance Minister and Minister of State for Finance :

If you don't mind my saying so, ... I think we need to reread Chapter V (the chapter in question).

The para 1.5 refers to the original DTC in which STT was to be abolished.

The para 3.7 refers to the modifications suggested after inputs on the original.

This is how para 3 (page 17 as per document numbering) starts:
Quote:
3. After considering the inputs received the following regime is proposed.

So the letter may not be entertained since the two paras are not "contra".
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