CENTRE TO AMEND MRTP ACT TO MATCH CORPORATE NEEDS
Article Abstract:
The Government of India plans to make amendments to the Monopolies and Restrictive Trade Practices (MRTP) Act to safeguard the companies better. The amendments are for adapting to the changing environment like WTO requirements, the patent regime and the need for strengthening the MRTP Commission without affecting corporate expansion. They will also demarcate the jurisdictions of consumer courts and the MRTP Commission. Now, there are no regulations to check the consolidation of companies leading to monopolies. After the liberalisation of economy, the Government had removed Chapter III of the MRTP Act which was meant to regulate consolidation of companies. Now, acquisitions and mergers are increasing in India. The Government has realised the need for an anti-trust law. The Department of Company Affairs has not yet decided as to whether the Government or an expert committee should draft the amendments. (um) (kvr)
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
NO TAX ON BUYBACK INCOME
Article Abstract:
According to Section 2 (22) (d) of the Income Tax Act, a sum paid by a company to its shareholders on reduction of its capital to the extent of accumulated profits will be considered as deemed dividends in the hands of the shareholders. Such dividends are exempt from income tax while it is mandatory for corporates to pay 10 percent dividend tax on the amount distributed as dividends. Such a provision could possibly apply to buyback of shares also. Corporates may be forced to reconsider their decision to buy back shares. (nr)
Comment:
According to Section 2 (22) (d) of the Income Tax Act, a sum paid by a company to its shareholders on reduction of its capital to the extent of accumulated profits will be considered as deemed dividends in the hands of the shareholders.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: U&I SCOTTY TO LAUNCH SILICON DESIGNS IN WORLD MARKET. MACNEAL TO LAUNCH MSC/DROP TEST IN INDIA. TAKING A SPIRITED STAND
- Abstracts: ASIATIC CHEM TO EXPAND WITH PLANT NEAR HYDERABAD. HLL CHANGES PUNCHLINE FOR `WHEEL' AD
- Abstracts: AUTO COMPONENT MANUFACTURERS HIT THE DIRT ROAD ON FALLING SALES
- Abstracts: `SPINNING VALUE' NEW THEME, LOGO. TATAS LAUNCH NEW LOOK LOGO. SSI TO HAVE NEW LOGO
- Abstracts: PARENT TO PROVIDE GUARANTEE TO GMAC-TCFC VENTURE. FDC LTD SETS UP EUROPEAN ARM TO BOOST EXPORTS