High Level Committee constituted to interact with trade and Industry and to bring in clarity on tax laws

As promised by the Finance Minister, in his Budget Speech for 2014-15, a High Level Committee (HLC) has been set up with the objective of restoring investor confidence and to provide a stable and predictable taxation regime. The HLC will interact with trade and industry and ascertain areas where clarity on tax laws is required. The HLC would then give recommendations to the Central Board of Direct Taxes (CBDT)/Central Board of Excise and Customs (CBEC) which are, thereafter, obliged to provide the necessary clarifications, circulars etc., within two months from the date of the HLC’s recommendations.

The setting up of an HLC is a welcome step forward to restore investor confidence and to provide a stable and predictable taxation regime that would be investor/taxpayer-friendly.

The constitution of the HLC provides a unique opportunity for businesses to proactively engage with the Tax Administration to redress their concerns in a time-bound manner.