The US-India Strategic Partnership Forum (USISPF) has pitched for further simplification of the tax structure in India, including the tax deduction at source framework, to reduce compliance burden of the industry.

In a comprehensive set of recommendations for the upcoming budget, the US-India Tax Forum, a dedicated tax policy forum of the USISPF also proposed extending concessional tax rates for greenfield manufacturing, which ended in March 2024.

It made a case for reducing compliance burden and aligning policies with global standards to attract investments in high-growth industries such as renewable energy, semiconductors and electric vehicles.

The tax forum, headed by former revenue secretary Tarun Bajaj, recommended introducing a reduced 15% tax rate for maintenance, repair and overhaul firms to strengthen post-manufacturing services, ensuring a robust and sustainable industrial ecosystem.

Additionally, it recommended measures to position GIFT City as a global financial hub, including exempting dividends for shareholders, offering tax exemptions on financial transactions and three-tier customs tariff structure.