1. There is a need for capital for technology up-gradation for the forging industry, by way of introducing a technology up-gradation scheme. This would enable the forging units to avail of bank loans at approximately, say, 5% lower than the market rate towards acquiring modern technology them more competitive in the international market
2.Substantial reduction in Minimum Alternate Tax (MAT) rates with the basic rate fixed at 5% to attract more industrial and infrastructure investments. Companies to be allowed to set-off entire past book losses including unabsorbed depreciation before they are subjected to MAT.
3.Formulating provisions for vehicle owners to surrender their vehicles to the manufacturing companies after 15 years of usage and be eligible to purchase a new vehicle with zero excise duty or at most 50% of the prevailing excise duty. This will on the whole enhance growth in the automotive sector thereby boosting national economy
4. Excise duty on all kinds of vehicles, more particularly the transport vehicles (both passenger and goods), should be reduced by a flat 5%. This measure is expected to increase demand for vehicles which in turn by a multiplier effect lead to a higher economic growth
5.Considering the critical power situation in the country, reforms are urgently needed to encourage projects that seek to produce renewable energy. Measures would include upgrading solar energy systems, make them economical and encourage usage of energy efficient products and support manufacturers who are doing so by way of concessions.
Mr. Sivasubramanian Natarajan, Managing Director, ThyssenKrupp Industries India Pvt. Ltd.
The Budget session of Parliament which commences shortly, is critical for a number of reasons. It is expected that the government will pass the ordinances it issued last month on coal block auctions, mining regulations, land acquisition and higher FDI in the insurance sector to prevent them from lapsing. Keeping in mind the GST implementation date of April 2016, the government would consider making adequate budgetary provisions for up-gradation of tax infrastructure.
Reliable Power supply is critical for the Indian economic development and efficient improvement of manufacturing. The recent decision of the government to go for e- auction of the mines has attracted investors and will reduce fuel availability risks. This will support the growth of the coal mining industry and provide fillip to mechanisation of mines. The most critical requirement in the coal mining industry is to improve the productivity, reduce the environmental impact and substantially reduce the cost of the mined coal at the power station.
The government has to provide security to the investors to ensure that their investments are safe and needs to be more transparent and implement long term policies for land acquisition, faster environment clearance and allocation of natural resources in order to augment infrastructure development.
The government must ensure stricter qualification requirement in selecting the bidder so that only the companies with long term interest are able to qualify . The tax system must be made more transparent and not subject to any interpretation. A high quality road and Rail infrastructure will help in ensuring the logistic costs are minimized.
Mr. Somnath Patil, President & CFO, Deepak Fertilisers and Petrochemicals Corporation Limited.
“I expect the budget 2015 -16 to be progressive and a very crucial one. There are huge expectations that this budget will set the direction for boosting overall economic growth and development in a sustained manner over a longer period of time. There is an urgent need for the government to look at accelerating the pace of reforms to facilitate ease of doing business in India in order to attract investments, both domestic and foreign. Concerted focus and conducive policy reforms are required in the field of infrastructure development to see the actual execution of various pending projects, which will address several growth challenges being faced by businesses. These steps will boost the overall business dynamics of the economy.
On the taxation front, while the government has taken the right steps with the announcement of a definite timeline for the introduction of Goods and Services Tax (GST), the government should also look at relaxation of the limits for taxation as well as providing sops for attracting further investments by the industry.”
Mr. Farrokh Cooper, Chairman & MD, Cooper Corporation Pvt. Ltd.
Tax simplification measures
1.Procedure to avoid hardship to Tax Deductees:
The procedure for getting TDS credit should be simplified. Particularly the harassment caused to the deductee due to mistake of tax deductor should be done away with. Presently the person whose income tax has been deducted at source gets credit for the same only if the tax deductor files his TDS return correctly quoting the PAN of the deductee. If the deductor does not file his TDS return or does not put correct PAN of the deductee, the credit for the tax deducted at source is denied to the deductee. This causes great difficulty to the deductee for no fault on his part.
The procedure in this regard should be simplified to avoid such a genuine hardship to the assessee.
2. In assessments, ad hoc disallowances should be discouraged
3. Fixing definite time frame within which appeals would be heard:
A definite time frame should be given within which appeals would be heard by the appellate authority. Many times the appellate authorities do not take up hearings in cases involving small demand amounts. As such the issues in appeal are kept pending. However, in assessee’s subsequent assessments, disallowances are made on the subject pending in appeals. This results genuine hardships to the assessee.
4.Felicitation of top tax payers in small towns and villages:
A practice of felicitation of top tax payers from small towns and villages should be put in place by the Income Tax Department for the performance of such top tax payers. It will encourage others to come forward and pay more tax. It will also bring a positive image of the Income Tax department in peoples’ minds.
5.Complications in service tax law due to plethora of Reverse Charge provisions should be reduced.
6.Provisions in Central Excise Act regarding payment of duty at the time of stock transfer of goods from one plant of a manufacturer to his other plant be removed to make the process simple.
Tax Rationalisation measures
1.In view of slower growth of manufacturing sector, benefits by way of higher depreciation should be provided for improving investment in the sector.
2.Since exporters are facing slump in demand due to weak global economic outlook, some tax incentives should be given to exporters in Income Tax.
3.For taxation of salary income, the exemption limits in respect of medical reimbursement, conveyance allowance, children education allowance should be adequately increased. The present limits are framed long back and with increase in inflation over the years, the benefits have become redundant.
4.Tax benefits to Export Oriented Units should be restored.
5.Duty draw back on turn over basis (like Domestic Tariff Unit) to EOU units who are not importing the raw material.
6.Extension of benefits of Large Tax Payer Undertaking (LTU) to other cities. Presently LTU facility is available only for select cities such as Bangalore, Delhi etc. the scheme should be extended to Tier II cities as well.
Cost optimization measures
1. Purchase of power from open access mechanism should be encouraged. Administrative barriers such as delay in permissions, issue of banking of units should be addressed on priority basis.
2.A uniform countrywide policy for open access mechanism should be framed and purchase of power from any state should be allowed under open access mechanism.
3. Adequate and sound infrastructure should be provided to manufacturing units. This is specially in respect of better roads, continuous power supply, immediate redressal of complaints etc.
1.Bringing in accountability in agricultural sector:
With a view to bring more accountability in agriculture sector and to prevent routing of black money under the guise of agricultural income, submission of financial statements of agricultural activity should be made mandatory in case of persons reporting agricultural income above certain threshold.