Industry seeks easy tax rules for GCCs within SEZs

Call for change

- AASHISH ARYAN

The government should consider offering concessional corporate tax rates or tax holidays to global capability centres (GCCs) set up within the notified special economic zones, the Confederation of Indian Industry (CII) has suggested. It also called for the harmonisation of permanent establishment rules.

In its suggestions for a national framework of GCCs, CII has proposed that the new government policy should also provide clarification on the nature of services being provided by the GCCs, thereby removing them from the category of 'intermediary'. This, CII said, will help expedite goods and services tax (GST) refunds and detailed scrutiny by authorities on tax refund applications.