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Aug 22, 2019
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Taxing times: Compliance complexity a big challenge for businesses
India’s tax challenge is not the rates per se, it lies in the complexity of compliance. This point appears to have been addressed by the Task Force report on revamping the Direct Tax Code. As reported in this newspaper on August 20, 2019, the recommendations are not yet public, but appear to be directed toward reducing tax rates, and changing the assessment and litigation management processes to simplify and share information among the various tax departments. While details of the report and the government’s responses are awaited, it is important to understand that the government is currently facing a constrained fiscal space and may not be eager to cut rates so easily. We have a tax conundrum on our hands.
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