Key recommendations for changes in tax policies for REITs / InvITs

Over the years, the Indian Infrastructure and real estate sector has experienced a significant transformation, with the emergence of Real Estate Investment Trusts (REITs) and Infrastructure Investment Funds (InvITs), playing a pivotal role in revitalizing the industry. Aided by the Government’s thrust on infrastructure development and employment creation, REITs / InvITs hold the potential to grow significantly from their present status of aggregate gross Assets Under Management (AUM) of over ₹5,50,000 crore and market capitalization of over ₹1,00,000 crore. To help realise further potential, AMCHAM has presented recommendations for the Government of India to consider suggestions put forward by US Industry in this sector

Request for Clarification on Cross Charge vis-à-vis Input Service Distributor (‘ISD’)

The Tax, Tariff and Regulatory Affairs Committee at AMCHAM made a representation to the Chairman of the Central Board of Indirect Taxes and Customs (CBIC) on 19th July 2022, seeking clarification on Cross Charge vis-à-vis Input Service Distributor (‘ISD’). In the recent past, AMCHAM members have been grappling with challenges on Cross Charge vis-à-vis ISD, and the widespread uncertainty regarding the relevance and consequent adoption of ISD mechanism. Intent behind the legislation and outcome is same in both methods (Cross Charge and ISD), i.e., to transfer GST to the State to which it pertains. Hence, a request for clarification, stating that cross charge is also a legitimate way to transfer the GST credit. This will avoid unnecessary litigation and burden on judiciary.

Request for Clarification in complying with provisions of Section 194Q and 206C(1H) of the Income tax Act, 1961 (‘Act’)

The Tax, Tariff and Regulatory Affairs Committee at AMCHAM made a representation to the Chairman of the Central Board of Direct Taxes (CBDT) on 13th July 2022, seeking clarification on complying with provisions of Section 194Q and 206C(1H) of the Income tax Act, 1961 (‘Act’). Finance Act, 2021 introduced provisions relating to TDS on purchase of goods under Section 194Q to cover those transactions which were left uncovered by section 206C(1H) of the Act. With the Contradictions on provision for deduction/collection of TDS/TCS on purchase/sale of goods we requested that only one provision be kept i.e., either 194Q or 206C(1H). The scope of the chosen provision can be widened to achieve the GOI objectives for tracking the transaction

Request for Rationalization of GST Rates (Food Processing Sector)

The Tax, Tariff and Regulatory Affairs Committee at and the Agriculture and Food Processing Committee at AMCHAM made a representation to the Chairman of Central Board of Indirect Taxes and Customs (CBIC) on 12th July 2022, with a request for rationalization of GST Rates in the food processing sector for non-alcoholic beverages and breakfast cereals