US asks India to address tax issues

NEW DELHI: United States has asked India to address the issue of uncertainty in taxation in a bilateral meeting on manufacturing on Monday in response to New Delhi’s suggestion that American companies set up manufacturing base in India and help build smart cities.

At the subcommittee meeting on manufacturing co-chaired by DIPP secretary Amitabh Kant and deputy USTR Robert Holleyman, India also asked US to relocate R&D to India and, producing low-cost products for the Indian market.

“Taxation was raised as the major concern by the US side. They asked India to have transparency and predictability of tax policies. It is a legitimate demand. They also raised the issue of labour laws,” said a government official. “Though there are no fresh cases under the new government. The legacy of past needs to sorted out,” said the official.