as an alternativein addition to comparable companies financial data and use of customssvb methodology for transfer pricing purposes and viceaversa with an objective to provide some relief to the sector the government may also consider rationalizing the existing safeharbour margins considerably to more realistic and acceptable levelsthe scope of equalisation levy el provisions was expanded two years back and these are now very widely worded there are significant interpretation issues impacting mncs having operations in india with the global consensus achieved at the inclusive framework the issuance of beneficial clarifications will provide much needed relief to nonresidents doing business with india without affecting indias negotiating positiontherefore in budget 2022 focus should be to ensure a more stable and consistent long term tax policy in order to make india a favourable destination for investmentsroad aheadthe past year has witnessed multiple initiatives from the government which are likely to yield positive results for the sector in the years to come the productionlinked incentives extended for electric vehicles and advanced technology components the vehicle scrappage policy and recent announcement of pli scheme for semiconductors are big positive steps and have the potential to rejuvenate demand and resolve supply chain disruptions for the sector having said that a continued government expenditure and a stable tax policy in the upcoming union budget can pave the way for revival and growth of the sectorthe author is head of tax kpmg in indiaalso readbudget 2022 expectations acma asks for uniform gst revision of rodept ratesaccording to sunjay kapur president acma the automotive industry is witnessing one of the most challenging yet interesting times ever disruptions due to the pandemic new technologies and regulations are redefining mobility he saidsee more details et contributors published on jan 12 2022 at 0500 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the submit button this will alert our moderators to take actions reasons for reporting foul language defamatory inciting hatred against a certain community out of context spam others report join the community of 2m industry professionals subscribe to our newsletter to get latest insights analysis download etauto app get realtime updates save your favourite articles scan to download app union budget 2022 expectation auto sector budget 2022 budget union budget pli pli scheme for semiconductor vehicle scrappage policy homenewsindustrywill union budget 2022 provide muchneeded booster shot to auto industry