
Money & Tax	Rail Budget	Economic Survey	Know your FM
Know your tax, consumption dividends, GST and more.»	Know your Railways; passenger fares, freight fares and more .»	Pegs Growth at 9%, Food Prices a Worry ..»	Pranab Mukherjee - Man of all seasons ..»
more news	more news	full story	full story

CFI seeks capital gains tax exemption for SPVs

Updated on Sunday, February 20, 2011, 18:14	Print Email

New Delhi: The Construction Federation of India (CFI) has asked the government to exempt Special Purpose Vehicle (SPV) companies from capital gains tax in the 2011-12 Budget.

"CFI has advocated capital gains tax exemption for `Special Purpose Vehicle` (SPV) companies on the lines of exemptions provided to listed companies," it said in a pre-Budget wish-list for the Finance Ministry.

If any capital asset is sold or transferred, the profits arising out of such sales are taxable as capital gains in the year in which the transfer takes place.

The SPV is usually a subsidiary company with an asset or liability structure and legal status, which makes its obligations secure even if the parent company goes bankrupt.

The CFI noted that it is mandatory for infrastructure projects to be executed through SPV companies under licence and concession agreements with the government. SPV companies fall in the category of unlisted companies.

PTI