‘This Budget Gave Limited but Positive Focus on SMEs’

‘This Budget Gave Limited but Positive Focus on SMEs’
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Emphasizing the MSME perspective, R Narayan, Founder and CEO, Power2SME expressed his views on the Union Budget commented, “Budget 2016-17 laid special emphasis on job creation and outlined measures to facilitate ease of doing business whilst simultaneously boosting the agricultural sector and the infrastructural growth. Measures such as lower corporate rate for small enterprises, increased turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act for assesses in MSME category and few others are welcome move for SME players. Government’s announcement for new manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge, will attract entrepreneurial push in the manufacturing sector.  However, I believe the turnover limit announced under Presumptive Taxation scheme could have been clocked between 3-5 crores and tax benefit of 25% + surcharge must have been given to larger set of manufacturing units with lesser number of existence.”

“With continued focus on the Make in India Campaign, Swacch Bharat Abhiyaan and Skill India Campaign, government has announced measures that will indirectly impact MSME sector. Extended allocation of money towards Skill India, changes in customs and excise duty rates on certain inputs, introduction of Model Shops and Establishments Bill, that allow small, medium shop owners to do business 24×7, are some measures that will improve competitiveness and boost domestic demand.” Narayan also added, “The positive but limited measures announced around SME or Startup space will definitely bring some relief to the sectors. The sectors, however, still look forward to developments related to GST.”

 

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