Concessions — boon or bane?
There are ongoing debates about tax concessions. Low tax rate with no concessions is simple and easy to operate, but is seldom adopted in practice. India has made some progress in this regard.
The merit of the tax concessions and how they should be viewed can be better understood through an analysis of one of the latest controversies relating to taxation of SEZs. As per the current regulations, SEZ developers and units are exempt from Min imum Alternate Tax (MAT). But now there are reports suggesting that MAT should be made applicable to them as well.