Source: Business Standard via Indian Economic Business News
India remains an attractive investment destination, even as taxation uncertainties pose a challenge, according to global consultancy Deloitte. “While India continues to be an attractive investment destination, the dynamic Indian tax framework creates some apprehensions in the investors’ perception about the approach on the tax issues related to transactions in India,” said a survey of investors, spread across various segments, conducted by Deloitte. “Around 63 per cent of those questioned consider Singapore to be a favourable jurisdiction for investments into India,” said the survey, adding 53 per cent consider uncertainties in the tax position as a significant challenge for doing business in India. Also, about 80 per cent of the participants indicated there should be rationalisation in India’s corporate tax rates in the range of 20 to 30 per cent. The survey suggested there was a need for a robust tax policy and an equally strong tax litigation process or an effective dispute resolution mechanism, to reinforce a stronger faith from multinational investors. It said investors believe India had an effective tax credit mechanism, which helped in reducing the overall tax burden, though there was room for improvement.