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Besides seeking abolition
of minimum alternate tax (MAT) and hike in income tax exemption limit, most want
clarity over a timetable to implement GST and DTC.
Atul Gupta, senior director, Deloitte India, said, "There should be a clear
indication on when the GST would be implemented. Industry will need time to gear
up to GST as it is not just about taxes but the entire supply chain as well.
Also, irrespective of issues between the centre and states on GST rates, there
should be some rationalisation of central taxes and exemptions should be
removed. The government should also spell out its stand on MAT that has
corelation with investments.
We would also like centre's stand on DTC on when it will come."
Agrees Nihal Kothari, chairman, committee of Indirect taxes, Assocham. He said
the centre should come up with a clear roadmap on implementing GST and DTC. It
should also reduce tax rates for individuals.
Jayesh Sanghvi, partner, Ernst and Young said, "I expect the FM to bring in some
DTC proposals in the budget with amendments to the I-T Act. Centre should extend
tax holidays to core areas. Given the fiscal situation, I do not see any major
changes in the personal or corporate taxes.
However, it can remove surcharge on income tax."
The industry is also pitching for continuation of stimulus measures, especially
the 6 per cent excise duty cuts. "The government should not roll back stimulus
as industry is yet to fully recover. Even if it has to, given the fiscal
deficit, manufacturing should be given a boost by bringing down corporate tax
rates to international level of 25.51 per cent from the 33 per cent. Customs
duty should remain the same to support industry.
Peak rates should not be brought down from 10 per cent. On personal taxation
front, we want that peak rate be applicable from Rs 700,00 instead of Rs 500,000
so that there is more disposable income.
We want GST to be introduced as soon as possible," said S B Gupta, advisor
(taxation), Ficci.
Source:
mydigitalfc.com, India, dated
16/02/2010
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