Finance minister Nirmala Sitharaman introduced the Taxation Laws (Amendment) Bill, 2019 in Lok Sabha on Monday that seeks to replace the ordinance, issued on September 20, to reducing corporate tax rate to 22 percent without incentives and 15 percent for new manufacturing bodies.
The bill motivates the centre to alert activities that may not stand as manufacturing to be eligible for 15 percent tax rate. Besides, conversion of marble slabs and bottling of gas will not be counted as eligible according to the bill.
It enables safeguards such as prohibiting reduced rate of 22 percent if the prescribed conditions have not been adhered and disapproved losses or unabsorbed depreciation due to a merger under the provision.
Sitharaman introduced the bill just prior to the proceedings in the Lok Sabha. The sessions were adjourned for the day following uproar from opposition over political developments in Maharashtra.
Amid the chaos, the government also announced the International Financial Services Centres (IFSCs) Authority Bill, 2019, that creates a unified financial regulator for IFSCs.
On September 20, Sitharaman had announced slashing of the base corporate tax rate to 22 percent from 30 percent for companies that do not look for exemptions, and reduced the rate for some new manufacturing companies to 15 percent from 25 percent.