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ASSOCHAM calls for 'One Nation, One Stamp Duty' for M&A transactions

13 Jul 2020 Evaluate
In order to ease M&A transactions, industry body the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has urged Finance Minister Nirmala Sitharaman to levy tax on mergers and acquisition transactions on the principle of 'One Nation, One Stamp Duty', as M&A activities are expected to rise in post-COVID-19 era. 

Comprehensively listing the issues, including the high cost of taxation at the level of states as also the compliance of the Income Tax procedures, the ASSOCHAM has sought better coordination between different wings of the government and regulators. The industry body also pointed out to a situation where an M&A transaction is subjected to stamp duty separately in two different states since the deal has an inter-state nature. 

Further, ASSOCHAM Secretary General Deepak Sood said that given the level of stress on the balance sheets, especially in the post-COVID-19 era, consolidation is expected across different sectors of the industries.

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