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Budget 2014: Expect inclusion of Crude Oil, Natural Gas in GST regime

The country has high expectations from the Union Budget 2014-15 scheduled to be announced on July 10 by the Finance Minister. We believe that the ensuing budget offers a platform to create a stable and consistent tax environment conducive for investment and in conformance with the government's priorities for the country. 

Tax policies go a long way in impacting the inflow of foreign investments in the country. Uncertainty created on account of incorrect interpretation of tax and transfer pricing law significantly dents investor confidence. Equity injections are a historically time-tested route to fund investments. There is no national or international precedence for taxation of such capital infusion. 

We would welcome a legislative amendment in the tax/transfer pricing law to clarify that equity injection in a wholly-owned subsidiary is not taxable. Tax benefits, policy interventions, debt restructuring initiatives, and tariff rationalisation are needed on an urgent basis to revive investor confidence. 

Source-On Request