Tax on gross assets challenged as inequitable for infrastructure; recommends exemptions and retention of MAT credit to protect projects.
The submission opposes shifting MAT to a gross assets base for infrastructure, recommending exemptions for projects and investment companies, extension of concessional rates, deduction of existing debt from gross assets, and retention of MAT credit. It requests that gross asset taxation not apply during tax holiday periods and seeks clarity on computation. On indirect taxes it urges exemption of capital dredging from service tax, reversal of a circular imposing interest where CENVAT credit was reversed before use, and extension of concessional CST declaration forms to key infrastructure sectors. (AI Summary)