Why is `corporate restructuring important as a theme for the Budget?
As global business strategies are moving towards consolidation and redefining core competencies to survive, sustain and achieve scale in a stiff marketplace, there is no second opinion that the corporate sector in India should not be left out in this dynamics witnessed by increased activity over the recent past. The coveted Corus acquisition by Tata Steel is one outstanding example of Indian corporate thinking, and acting in terms of such global strategy which has prompted the Finance Minister, Mr P. Chidambaram, to hold out an assurance that the Government would do whatever it can to facilitate the acquisition process. Fiscal considerations do play a significant role in such strategies to ensure that the structures remain tax neutral and result in optimised tax cost. Taking into consideration several provisions that have been put in place over a period of time in the statute to ensure neutrality in income-tax assessment between the transferor company, its shareholders and the transfer
