It is proceeding cautiously, and is unlikely to implement rules anytime soon, the source said.
Pillar Two, also known as the Global Base Erosion (GloBE) rules, is a global tax system that requires multinational enterprises (MNEs) to pay a minimum tax on their profits in each country where they operate.
The rules are designed to prevent MNEs from shifting profits and to ensure that they pay an appropriate rate of tax.
"An internal analysis indicates that the government is likely to see only an additional revenue of ₹100-200 crore after implementing Pillar Two, and that's only under certain conditions," an official said.
"The gains are not much, and losing the right to make la
ws for such a small amount is a big price to pay," the source added.
This story is from the October 30, 2024 edition of Business Standard.
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This story is from the October 30, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
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