Budget 2024: 15% corporate tax for mfg needs extension: Shardul Amarchand

Tax partner at Shardul Amarchand Mangaldas & Co, Gouri Puri says the upcoming budget needs to address several tax policy issues like rationalization of capital gains tax, extension of 15% corporate tax for manufacturing firms, and draft rules and guidelines for Pillar II global minimum taxation. The 15% concessional tax regime for manufacturing ended on 31 March this year. Puri said the government needs to bring more clarity on the tax treatment of Indian depository receipts. “As the Indian capital markets pick up steam, foreign companies are looking to list their shares on the Indian stock exchanges through IDRs. However, they are dissuaded by the lack of clarity on IDR taxation and the disparity between the tax treatment of listed equity shares and the IDRs, which makes IDR less tax competitive,” Puri said.