In its pre-Budget presentation with the Finance Ministry, the ASSOCHAM has sought immediate reduction in the corporate tax to 25% to attract more investment in the country while for driving the consumption led demand, income tax for individuals should also be reduced along with upward revision in the exemption limit upto Rs 5 Lakhs.
The Associated Chamber of Commerce and Industry of India (ASSOCHAM) in its Pre-budget meeting with the Revenue Secretary Dr. Hasmukh Adhia made some important suggestions. The proposed multiple Goods and Service Tax (GST) rate structure could increase classification disputes. Therefore, the categorisation of products under each duty slab should be carefully done.
Corporate tax needs to be reduced to 25% to attract more investment in the country. The income tax rate for individuals to be reduced and threshold limit should be increased in view of the current situation prevailing in the country at the pre-budget meeting with the Revenue Secretary.
The Associated Chamber of Commerce and Industry of India (ASSOCHAM) in its Pre-budget meeting with the Revenue Secretary today made some important suggestions. The proposed multiple Good Service Tax (GST) rate structure could increase classification disputes. Therefore, the categorisation of products under each duty slab should be carefully done.
It said the committed investment link tax incentive for specifies period should be grant fathered under GST for the un-expired period of committed incentives.
During the initial period of two year after implementation of the GST penal provision should not be made applicable unless there are frauds cases, the chamber.
The tax administrative provision under the draft GST law are quite harsh and may leave to Inspector Raj and this need to modify in the final GST law.
The valuations of stop transfers and inter branch transaction need certainty in the GST law.
Inverted Duty structure under excise on pharmaceutical products needs to be corrected. The basic custom duty rate on some of the products like aluminium, copper, steel and polymer need to be reduced in the current scenario.
ASSOCHAM further suggested that corporate tax needs to be reduced to 25% to attract more investment in the country. The income tax rate for individuals to be reduced and threshold limit should be increased in view of the current situation prevailing in the country.
Demonetisation of currency notes of Rs. 500/1000 will have a short term adverse impact on demand on items for mass consumption hence duty rates for such products should be reduced in the next budget to revive the demand.
