PSEs need to comprehend international taxation: Experts

NEW DELHI: Central public sector enterprises (CPSEs) need to equip themselves with issues on taxation and international financial reporting standards as more than half of 225 such units are now involved in overseas dealings, say experts.

As many as 147 CPSEs have either foreign exchange earnings or expenditures, as per PSUs apex body SCOPE.

"Empowerment to PSEs has contributed to these enterprises entering global forays by way of joint ventures, overseas acquisitions etc," SCOPE Director General U D Choubey said.

According to Institute of Charted Accountants ( ICAI), finance executives and tax officers of public enterprises need to comprehend tax implications owing to the firms growing global presence.

"Direct Tax Code, Goods and Service Tax, International Financial Reporting Standards, e-learning and cloud campus are the new areas which are coming in and the members need to equip themselves," ICAI Vice-President K Raghu said at a conference on 'International Taxation' organised by ICAI and SCOPE here.

The key areas covered in the conference included basic concepts of taxation of cross border income streams and taxation in case of outbound and inbound mergers.