Assocham Bulletin - - FOCUSSTATE -

Ian­run up to the forth­com­ing Bud­get, likely to be pre­sented on Fe­bru­ary I, 2017ASSOCHAM par­tic­i­pated in the pre-bud­get con­sul­ta­tions with the Hon'ble Fi­nance Min­is­ter.

Par­tic­i­patin­gin the Pre-Bud­get con­sul­ta­tions with the Fi­nance Min­is­ter, the AS­SOCHAM Pres­i­dent said se­nior cit­i­zens and salaried em­ploy­ees are par­tic­u­larly af­fected by ris­ing prices of es­sen­tial com­modi­ties and de­serve re­lief, which calls­for in­crease in tax ex­emp­tion lim­its for se­nior cit­i­zens and salaried em­ploy­ees, which shall give a de­mand push to the econ­omy. This would not only give a push to the con­sumer de­mand but also pro­mote per­sonal sav­ings.

As for In­dia Inc, Mr. San­deep Ja­jo­dia said, Cor­po­rate tax should be re­duced to 25% as com­mit­ted by the Gov­ern­ment ear­lier, to en­cour­age in­vest­ment by do­mes­tic and for­eign com­pa­nies. Con­sid­er­ing that US. Gov­ern­ment is also in the process of mak­ing ma­jor tax cuts in US and other coun­tries like Sin­ga­pore and Mid­dle East al­ready has lower tax rates, the re­duc­tion of cor­po­rate tax rate will be a right step in a highly com­pet­i­tive global en­vi­ron­ment. Sim­i­larly Div­i­dend Dis­tri­bu­tion Tax rate should also be re­duced

In case of Bank­ruptcy

& In­sol­vency scheme im­ple­men­ta­tion waiver amount due to sale of as­sets, trans­fer of busi­ness or part thereof, change

in cap­i­tal etc should be made to taxneu­tral and tax at­tributes like losses/ de­pre­ci­a­tion/ al­lowances should be al­lowed to be car­ried for­ward in the hands of the suc­ces­sor so long as terms of im­ple­men­ta­tion are fol­lowed. Many coun­tries per­mit a group of re­lated com­pa­nies to be treated as a sin­gle tax­payer, or have a spe­cial regime for group mem­bers. It is­rec­om­mended that to re­duce the com­pli­ance bur­den of the group as a whole and to pro­vide flex­i­bil­ity to or­ga­nize the busi­ness ac­tiv­i­ties of group a sys­tem of group tax­a­tion may be in­tro­duced which could pro­vide for con­sol­i­dated fil­ing of re­turn and as­sess­ment, Mr. Ja­jo­dia said.

As for in­di­rect taxes, the com­plex GST com­pli­ance pro­ce­dures have ad­versely af­fected the busi­ness ac­tiv­i­ties, par­tic­u­larly in the SME sec­tor and even some large in­dus­try seg­ments like tex­tiles. The Gov­ern­ment should in­volve ac­tive par­tic­i­pa­tion of trade and in­dus­try to sim­plify the process for smooth tran­si­tion.

GSTlaw con­tains sev­er­alau­dit and in­ves­ti­ga­tion pro­vi­sions which can be ex­er­cised even at lower level with­out fix­ing re­spon­si­bil­ity if mis­used. Ap­peals against high pitched tax as­sess­ment re­quire up­front ad­vance de­posit by tax payer but with­out any re­spon­si­bil­ity on the part of tax depart­ment. This will lead to pro­longed lit­i­ga­tion and tax un­cer­tainty. Gov­ern­ment must fix ac­count­abil­ity on tax ad­min­is­tra­tors.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.