Government tweaks definition of manufacturing in corporate tax cut bill

Government moved to formalise lower corporate tax rates that had been implemented through an ordinance, but the new bill throws in some changes - the definition of manufacturing is changed to exclude specific activities including software development, production of cinematic films and mining, so companies in these areas will never be eligible for lower rates. The law also brings in a one-strike-and-you're-out clause. So the violation of even a single condition will mean a company can never avail a lower rate again. To discuss this CNBC-TV18 spoke to Hitesh Gajaria Partner & Co-Head - Tax at KPMG India.