Assocham for easing tax measures to spur investor confidence

The Associated Chambers of Commerce and Industry of India (Assocham) has sought a series of direct tax measures aimed at boosting investor confidence, particularly in digital infrastructure, and called for simplifying compliance and reducing litigation, in its pre-Budget submission to the revenue secretary.

- MONIKA YADAV

A key demand relates to tax certainty for global data centre players looking to invest in India.

The chamber said the government should ensure that foreign entities availing data centre services from India are not treated as having a business connection, significant economic presence (SEP) or permanent establishment in the country.

"Setting up an approved data centre requires significant long-term investment. Given the size and scale, availability of land/necessary resources, there is a huge opportunity for India to attract investments from large digital players to set up data centres in India through their subsidiaries/ affiliates," it said, warning that lack of clarity could deter multinational investment.