Published On : Sat, Jul 19th, 2014

Lack of clarity on retrospective amendments proposed in the budget- Bansi Mehta

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Nagpur News : The Union Budget 2014 presented by Honourable FM did not have too much of a leeway to come out with Tax sops and incentives but still as far as direct taxes are concerned there are 121 amenments in the finance bill out of which 75 are retrospective or partly retrospective exclaimed CA Bansi S Mehta , Past President ICAI and an expert on the analytical review of the budget while speaking at Budget meeting organized by Western India Regional Council (WIRC) of ICAI at Mumbai.

Addressing a Jam-packed Auditorium of Yogi Sabagruha with more than 3000 people withnessing the programme inspite of heavy rains , Mr. Mehta said that only one provision will be operating from FY 2016 while other provisions are mostly applicable in current financial year .

He further said that there is a lack of clarity on the retrospective amendments passed by the previous regime. To boost industrial growth, a positive measure is allowing for Investment Allowance on new investment in Plant & Machinery exceeding Rs. 25 crores. The proposed introduction of Roll Back provision in APAs and introduction of Range Concept in Determination of ALP for Transfer Pricing purposes will help reduce litigation and bring more certainity to foreign investors on the tax front.

He further opinied that CSR expenditure proposed to be non-allowable expenditure but will be treated as appropriation of profit as proposed in the budget will not be taken in good spirit by the corporate world. He also threw light on the provisions of investment into more than one house propertiesbeing not considered for exemtion U/s 54 and 54F being contrary to the various decisions rendered by several high courts .

He also discussed the provisions of unlisted shares, listed shares, business trust ,transfer pricing,  advance pricing agreement, AMT i.e. alternate minimum tax ,various changes in proposed capital gains etc. On this occasion a detailed budget publication of WIRC was released at the hands of CA Bansi. S Mehta in presence of CA Neel Majithia, Chairman Direct Tax Committee and CA Priyam Shah Chairman Indirect Tax Committee.

Earlier CA Anil Bhandari Chairman WIRC in his welcome speech said that although there were no fire works in the budget but it does give an insight that the new government will be committed to ramping up growth by encouraging investment in the economy. The main issues tackled by the budget includes a pledge to rein in the fiscal deficit, implementing the long pending GST framework, freeing up the FDI restrictions in key sectors like defense and insurance as well as reducing the uncertainity in tax. CA Julfesh Shah  Vice- Chairman WIRC introduced CA Bansi S Mehta in his unique style while CA Girish Kulkarni Treasurer WIRC welcomed him with Bouquet. CA Shruti Shah Secretary WIRC proposed a formal vote of thanks. On this occasion

prom,inently present were Past President ICAI CA B.L. Kabra CCM CA Pankaj Jain and Praful Chhajed along with several Regional Council Members , Past Chairmen of WIRC and Dignitaries from all section of the society.