Accessibility Statement Skip Navigation
  • Resources
  • Blog
  • Journalists
  • +44 (0)20 7454 5110
  • Client Login
  • Send a Release
Return to PR Newswire homepage
  • News
  • Products
  • Contact
When typing in this field, a list of search results will appear and be automatically updated as you type.

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases

      • All Public Company News
      • All Multimedia News
      • View All News Releases

      • Regulatory News

      • D/A/CH Regulatory News
      • UK Regulatory News
      • View All Regulatory News

  • Business & Money
      • Auto & Transportation

      • Aerospace & Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads & Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking & Road Transportation
      • View All Auto & Transportation

      • Business Technology

      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors
      • View All Business Technology

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Financial Services & Investing

      • Accounting News & Issues
      • Acquisitions, Mergers & Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalisation
      • Sales Reports
      • Shareholder Activism
      • Shareholder Meetings
      • Stock Offering
      • Stock Split
      • Venture Capital
      • View All Financial Services & Investing

      • General Business

      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Environmental, Social and Governance (ESG)
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls & Research
      • Trade Show News
      • View All General Business

  • Science & Tech
      • Consumer Technology

      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications
      • View All Consumer Technology

      • Energy & Natural Resources

      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil & Gas Discoveries
      • Utilities
      • Water Utilities
      • View All Energy & Natural Resources

      • Environ­ment

      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters
      • View All Environ­ment

      • Heavy Industry & Manufacturing

      • Aerospace & Defence
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation & Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking & Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco
      • View All Heavy Industry & Manufacturing

      • Telecomm­unications

      • Carriers & Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications
      • View All Telecomm­unications

  • Lifestyle & Health
      • Consumer Products & Retail

      • Animals & Pets
      • Beers, Wines & Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics & Personal Care
      • Fashion
      • Food & Beverages
      • Furniture & Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewellery
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys
      • View All Consumer Products & Retail

      • Entertain­ment & Media

      • Advertising
      • Art
      • Books
      • Entertainment
      • Film & Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television
      • View All Entertain­ment & Media

      • Health

      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine
      • View All Health

      • Sports

      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories
      • View All Sports

      • Travel

      • Amusement Parks & Tourist Attractions
      • Gambling & Casinos
      • Hotels & Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry
      • View All Travel

  • Policy & Public Interest
      • Policy & Public Interest

      • Animal Welfare
      • Corporate Social Responsibility
      • Economic News, Trends & Analysis
      • Education
      • Environmental
      • European Government
      • Labour & Union
      • Natural Disasters
      • Not For Profit
      • Public Safety
      • View All Policy & Public Interest

  • People & Culture
      • People & Culture

      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Diversity, Equity & Inclusion
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women
      • View All People & Culture

  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • SocialBoost
  • Rooms
    • MediaRoom
    • ESG Rooms
  • AI Tools
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Hamburger menu
  • Cision PR Newswire UK provides press release distribution, targeting, monitoring, and marketing services
  • Send a Release
    • Phone

    • +44 (0)20 7454 5110 from 8 AM - 5:30 PM GMT

    • ALL CONTACT INFO
    • Contact Us

      +44 (0)20 7454 5110
      from 8 AM - 5:30 PM GMT

  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • News in Focus
    • Browse News Releases
    • Regulatory News
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
  • Policy & Public Interest
    • Policy & Public Interest
  • People & Culture
    • People & Culture
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • Overview
  • Distribution
  • Paid Placement
  • Multichannel Amplification
  • Disclosure Services
  • Cision Communications Cloud®
  • AI Tools
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists
  • General Enquiries
  • Media Enquiries
  • Partnerships
  • Client Login
  • Send a Release
  • Resources
  • Blog
  • Journalists

Towards Rebooting Growth: A BMR Analysis of Union Budget 2014


News provided by

BMR Advisors

10 Jul, 2014, 21:02 GMT

Share this article

Share toX

Share this article

Share toX

This image opens in the lightbox
BMR Advisors Logo (PRNewsFoto/BMR Advisors)

GURGAON, India, July 10, 2014 /PRNewswire/ --

Budget 2014 reflects a number of priorities identified in the BJP election manifesto - the need to simply the taxation regime, provide a non-adversarial tax environment, revamped dispute resolution mechanisms and the need to build a consensus with State Governments to introduce GST expeditiously.  Beyond this, the other material priority was to leverage tax policy to the extent possible to kick start the investment cycle leading to job-creation and economic growth.  Budget 2014 addresses each of these priorities to varying extents.

     (Logo: http://photos.prnewswire.com/prnh/20140710/696809 )

Budget 2014 takes a number of steps to mitigate tax disputes.  A mechanism of advance rulings, which is only available to non-resident taxpayers (and public sector undertakings), is now proposed to be extended to cover resident taxpayers as well.  While it is a laudable move, there are concerns about the efficacy of the forum.  Acknowledging this, the FM has proposed to augment the capacity of the ruling authority.  Disputes emanating from the transfer pricing domain are sought to be curtailed through a number of amendments, the most significant being a 4 year "roll back" of an advance pricing arrangement.  The scope of the Settlement Commission is proposed to be redefined to make it a potentially more effective dispute resolution forum.  Details in this regard are to be released in the current session of the Parliament.  A High Level Committee which will interact on a regular basis with industry and issue clarifications on a current basis on direct and indirect tax issues is proposed to be constituted.

The Finance Minister reiterated the Government's intent to provide a non-adversarial and business friendly tax environment.  A widely anticipated move that would have signalled this intent was an abolition of the retrospective "Vodafone" amendment in the income tax law.  While the Finance Minister stressed that the Government would consider retrospective amendments only in exceptional circumstances, it did not repeal the retroactivity of the Vodafone amendment.  It has proposed that CBDT will constitute a committee which will review indirect transfer cases, thereby perpetuating uncertainty that envelops such transactions.  Finally, a Government appointed committee had made a number of recommendations with regard to how these provisions should operate; clarifications in this regard do not find mention in Budget 2014.  Accordingly, and at least in this area, greater clarity and certainty remain elusive.

The financial services sector and the capital markets received focus.  A taxation framework for real estate and infrastructure investment trusts has been proposed.  The Finance Minister reiterated his Government's commitment to implement the recommendations of the FSLRC and also indicated that the Government would implement a number of recommendations made by the Sahoo Committee to permit greater flexibility in the market for ADRs, GDRs and Indian depository receipts.  There is a proposal to permit trading in and settlement of trades in Government securities outside India, with enabling tax provisions.  Infrastructure financing has been given a boost by relieving long term funds raised by banks for this purpose from statutory reserve obligations.  FDI in insurance has been enhanced to 49 percent.

Largely the budget proposals of this year have sought to address key concerns in indirect taxes, without being reformative or populist.  It appears that the government will probably make reformative changes in the next year.  However not all curative amendments made this year have been accurate, leaving many questions unanswered

The biggest expectation this year was with respect to introduction of a road-map to GST, however there was no commitment from the finance minister on a firm deadline with respect to its implementation and neither was there any indication on a clear way forward with respect to its introduction.  The only statement made was in readying key enablers of GST in the coming year - the Constitutional Amendment Bill and draft GST legislation.  This non-commitment of the government has been disappointing for all stakeholders considering the amount of clamour made off late regarding its implementation.  The centre would now be faced with the task of gaining the support of all the state governments and also ironing out other important aspects like rate of GST, items to be left outside its scope and IT preparedness. 

On service tax, the approach has been to widen the tax base and thinning down on existing exemptions.  On the excise front, there has been a focus on boosting domestic manufacturing and addressing the issue of the inverted duty structure in some specific industries like IT hardware, chemicals and petrochemicals.  The government has given special attention on enhancing growth of the non-conventional energy sector by providing customs duty concessions and exemptions on inputs.  With a significant increase in excise duty rates on tobacco products, aerated drinks with sugar, increase in clean energy cess, it seems that the government is keen on environment sustainability and well-being of individuals.

All in all, while the budget announcements have tried to address current tax issues of the industry, for bold reforms, we will have to wait for the Government to present its first full year budget in the next year.  However, possibility of tax law amendments during the course of the year cannot be ruled out.

Contact:

Rashika Kaul
Director- Corporate Communications
Direct Line: +91-0124 339 5205
rashika.kaul@bmradvisors.com

Modal title

Contact PR Newswire

  • +44 (0)20 7454 5110
    from 8 AM - 5:30 PM GMT
  • General Enquiries
  • Media Enquiries
  • Partnerships

Products

  • Content Distribution
  • Multimedia Services
  • Disclosure Services
  • Cision Communications Cloud®

About

  • About PR Newswire
  • About Cision
  • Partnering Opportunities
  • Careers
  • Accessibility Statement
  • APAC
  • APAC - Simplified Chinese
  • APAC - Traditional Chinese
  • Brazil
  • Canada
  • Czech
  • Denmark
  • Finland
  • France
  • Germany
  • India
  • Indonesia
  • Israel
  • Japan
  • Korea
  • Mexico
  • Middle East
  • Middle East - Arabic
  • Netherlands
  • Norway
  • Poland
  • Portugal
  • Russia
  • Slovakia
  • Spain
  • Sweden
  • United States
  • Vietnam

My Services

  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
  • Data Privacy

Do not sell or share my personal information:

  • Submit via Privacy@cision.com 
  • Call Privacy toll-free: 877-297-8921

Contact PR Newswire

Products

About

My Services
  • All News Releases
  • Customer Portal
  • Resources
  • Blog
  • Journalists
+44 (0)20 7454 5110
from 8 AM - 5:30 PM GMT
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2025 PR Newswire Europe Limited. All Rights Reserved. A Cision company.