Tell us something about Kelkar Commission
Report.
The Kelkar Commission Report recommended
on simplification of procedures for business transactions with respect to
direct and indirect taxes reformation. The report focuses on improving the
velocity of doing business in India, to create a hassle-free environment with minimal transactions and
minimal human interface. On the front of direct taxes, report
mentions removal of exemptions under I ONI OB for exports earnings for units under EOUs/EPZs
and tax holiday under 80 IA and 80 ill; disallowance of interest cost on borrowings; restricting
depreciation claim to the Companies Act only; withdrawal of tax concessions under Section 35 for
investment for Scientific and
Research purposes etc.
On the front of indirect taxes, the report
mentions of a two-tier duty structure for customs, 10% for
input components and 20% for finished goods.
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