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In regard to the direct taxes, the bill seeks to widen the scope of definition of demerger under the Income Tax law to include the splitting up of or the reconstruction of a public sector company, which ceases to be so as a result of transfer of its shares.
In regard to indirect taxes, the draft legislation seeks to increase the tariff rate of customs duty from current 10 per cent to the WTO-bound rate of 40 per cent on rough marbles and granite blocks/slabs.
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