BUDGET - BMR Advisors

Tax holiday• 5 year tax holiday granted to undertakings engaged inoperating and maintaining a hospital in specified areas.Following conditions to be satisfied:– construction to be completed and operations tocommence before March 31, 2013– hospital to have atleast hundred beds– construction to be in accordance with the regulations /bye – laws of the local authority• 100 percent tax holiday granted for a period of 5 years toundertakings engaged in the business of hotel in specifieddistricts having UNESCO declared world heritage sites.The hotel should be constructed and should startfunctioning before March 31, 2013Dividend Distribution Tax (DDT)• Dividend declared by a subsidiary to its parent allowed as adeduction in computing the DDT liability of the parent on itsdividend declaration. Following conditions to be satisfied:– Dividend is received from a subsidiary– DDT has been paid on the incoming dividend– Parent is not a subsidiary of another company• Subsidiary defined to mean a company in which more than50 percent shares are held• This amendment to take effect from April 1, 2008Withholding tax• Contractual payments by Association of Persons and Bodyof Individuals liable to tax withholding under section 194CMAT• In computing book profits, deferred tax debited to the profitand loss account to be added back• Definition of “income tax paid or payable” widened to includeDDT, interest, surcharge and education cess56indiaBUDGET2008