IN a document titled ‘The Way Forward - USIBC’s 2012–2013 Business Advocacy Agenda’, USIBC says it would “press for steps to create a more predictable and transparent tax environment in India, such as updating the Bilateral Tax Treaty, reaching a binding arbitration memorandum of understanding, adopting alternative dispute resolution procedures, and implementing advance pricing agreements.”

USIBC, which is an association of American and Indian companies that normally have business ties, would continue to advocate for legislation and implementation that provides certainty in India’s international tax treaties and investment structures, especially in the execution of the proposed Goods and Services Tax (GST) and new Direct Tax Code (DTC).

For India to remain on the cutting edge and an attractive investment destination, it must have a fair, consistent, and predictable tax environment, the Agenda says.

It would work with the Office of the United States Trade Representative in petitioning Indian Government to lower tariffs on a range of key components and products, including in the automobile sector, which will deepen collaboration between American companies and their Indian counterparts.

“High tariffs affecting heavy equipment and machinery, gas turbines, and chemical imports need to be lowered.” The document says.

In insurance sector, it has called for strengthening the planned changes to the Direct Tax Code by maintaining the tax-exempt status of ULIP distributions, increasing the exemption limit for life insurance premiums, reducing the mandatory face value-to-annual premium percentage for tax exemption, and rationalizing the corporate tax rate.

It would also push for the extension of the service tax exemption to insurance agents and the tax loss carryforward period.